With the trend of record low mortgage rates lately, many more people are seriously considering refinancing their home. Refinancing is not for everyone, but there are big benefits for some people.
For those in good financial standing, refinancing can be used to shorten the length of your mortgage and/or lower your monthly payment.
Another good reason to refinance is to lock in a lower fixed interest rate than the one you currently have. You will need to pay attention to the market to see how the fixed interest rate is trending, but if you refinance at the right time, you may be able to secure a notably lower interest rate than your original mortgage. This can allow you to start paying your equity off faster.
If you put less than 20% down on your home initially and are paying for Private Mortgage Insurance (PMI) and have paid at least 20% of the cost of equity (you own 20% of the value of your home), it is definitely a good idea to refinance. Once you cross the 20% threshold, you will no longer need to pay PMI.
There are many good reasons to refinance your home, but it helps to know all of your options first.
Keystone Mortgage provides Tennesseans with the best mortgage experience, period. So what are you waiting for? Apply here now. Call us today at 865-909-0211 to find out if refinancing is the right move for you.