Take Advantage of Lower Interest Rates

1. Lower Your Interest Rate

If interest rates have dropped since you took out your loan, refinancing to a lower rate could save you money over the life of your mortgage. Even a small decrease in your rate might save you hundreds of dollars monthly. However, make sure the savings from the lower rate outweigh the costs of refinancing, including closing fees.

2. Access Your Home Equity

Over time, you may have built up significant equity in your home without realizing it. Your loan originator can guide you through the process of tapping into that equity, converting it into cash for expenses like home renovations, education, medical bills, or debt consolidation.

3. Convert Your Adjustable Rate Mortgage to a Fixed-Rate Mortgage

If you're currently in an Adjustable Rate Mortgage (ARM), you may have experienced fluctuating loan payments. If you're ready for the stability of a consistent monthly payment, refinancing to a fixed-rate mortgage could be the solution, if you qualify.

4. Adjust Your Loan Term

As life changes, so do your financial circumstances. Perhaps you initially chose a longer loan term when you had a lower income, or you opted for a shorter term while in a two-income household. If things have shifted, discuss with your loan originator whether adjusting your loan term could be beneficial.

5. Eliminate PMI

If you didn't put down 20% when you bought your home, you may have been paying private mortgage insurance (PMI).
But if you've built up enough equity through your payments, refinancing could help you eliminate PMI.

If your new mortgage balance is below 80% of your home's value, you may no longer need to pay for it.

Reach out to your loan originator for more information.