The plain fact is there’s never been and may never again be a better time to refinance your mortgage. Whether you’re looking for a lower rate, a shorter term, to consolidate debt or take cash out, 2015 is the year to do it.
We’re a mortgage company, and it would be unreasonable for us to just expect you to take our word for it. Here are four very good reasons to refinance in 2015.
You’ve heard it 100 times, but we wouldn’t say it so much if it wasn’t important. The environment for mortgage interest rates is consumer-friendly. Rates won’t stay this low forever. The Federal Reserve has plans to raise short-term interest rates in the near future. When that happens, rates for mortgages will go up. This makes now the perfect time to pull the trigger and get into a lower rate.
Shorten Your Term
Thirty years is a long time to pay anything off. The low-rate environment may also make this the perfect time to shorten your term.
Because of the way rates are, you may be able to take years off your mortgage while maintaining the same payment or even getting a lower one. You’ll be that much closer to owning your house outright.
Your mortgage can be an excellent tool to help you consolidate debt into one payment with a significantly lower interest rate. You do this by taking equity out of your home and using the money to pay off debts.
How much of a difference can debt consolidation make? Let’s take a look at credit cards as an example.
According to the latest available data from Bankrate, the average interest charge for cards with fixed rates is 13.1%. Variable rates are just shy of 16%. That’s before adding other payments like your car, any student loans (more on those later) and your mortgage.
By comparison, mortgage rates are in the low 4% range. That’s a lot of interest you can save over time.
The last great reason to refinance is to turn your home equity directly into cash. You might use that cash for a home repair or to give the college fund a boost.
There are several home improvements you can make that will add value to your home. Some are small, but for bigger expenses like renovating the bathroom, the equity in your home can help out big time.
Parents of high schoolers: please make sure you’re seated before reading the following paragraph.
You probably knew the cost of college tuition is rising, but you may not know just how much. According to the Wall Street Journal, 2015 graduates have the highest amount of student loan debt ever recorded. The average graduate will leave campus with just over $35,000 in debt. That college fund may need a cash infusion.
The good news is rates are low enough that you can feel good about taking the equity out to invest in your child’s future.
Are you ready to see if refinancing makes sense for you? Check out our revolutionary way to obtain a home loan completely online with Rocket Mortgage!
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