Do You Need Advice On Refinancing?

If you find yourself in the position of having an Adjustable Rate Mortgage and your loan is about to enter that period of adjustment you might want to take a few moments and consider refinancing. Many consumers will be facing what is commonly known as “payment shock” which is when the mortgage adjusts and the monthly payment can increase by hundreds of dollars overnight. Let’s examine some benefits you could get from refinancing.

As with most “free” things, the actual fees and costs are, in reality, merely shifted from one place to another. With a mortgage, this usually means that there may be no actual upfront costs, but you’ll be paying a higher interest rate in the long run (which will likely cost you much more than if you’d just paid the fees in the first place).

Depending on how long you’ve had your loan and the rate at which it was originated, you could be in the enviable position of being able to refinance to get not only a lower payment but also a shorter loan term. Wouldn’t that be a great surprise? Also, in certain cases, whether or not you can get a shorter term on your loan, refinancing can open up the equity that you have built up allowing you to take out an equity loan or line of credit at a later date.

If your mortgage rate being inflated even more than normal, this means you’ll be paying even more over the life of your loan — more than double, in some cases, than what you would’ve paid if you had just paid the costs up front as in a normal mortgage. And that is not good for you (or your wallet).

Any financial planner of loan officer will be able to run the numbers for you and figure out if refinancing is a viable option for you, at this time, in your unique situation.

Both of these resources can also help you with more information