Should You Refinance Your Mortgage in Lake Worth, FL
There is a lot of buzz about refinancing as it often allows people to reduce the interest on the loan and get better terms. Thus, whenever homeowners in Lake Worth, FL hear that interest rates are falling, they rush to refinance their home loan. Refinancing essentially means replacing the current home loan with a new one, and it is beneficial in many circumstances. If you are wondering whether you should refinance your home loan in Lake Worth, FL or not, you are at the right place. We will share the conditions in which refinancing is feasible.
Refinance if You Can Get Lower Interest Rates
A loan’s interest rate increases the monthly loan payments. If you can refinance your home loan and get better interest rates on the new mortgage, you should consider refinancing. It is worth noting that you may only qualify for better rates if your credit score is good. Therefore, it is a poor decision to refinance your home loan with a bad credit score. If you have an excellent credit score and want to refinance your home loan, get in touch with FourPath Mortgage, and we’ll connect you with lenders who are best for you.
Refinance if You Want to Switch to a Fixed-Rate Mortgage
If you currently have a variable-rate mortgage, you might be paying different amounts in monthly payments each month. This can create some uncertainty and make it difficult for you to make payments on the loan when interest rates are high. If you are finding it hard to make monthly payments on a variable-rate mortgage because of high interest rates in Lake Worth, FL, it is worth refinancing your mortgage. By refinancing your home loan, you may be able to switch from a variable-rate home loan to a fixed-rate mortgage. In a fixed-rate mortgage, you’ll be required to make the same payment each month.
Refinance if You Want to Tap into Home’s Equity
Equity is the difference between the amount you owe in loan and the total worth of your property. You can refinance your home loan to tap into your home’s equity. Thus, if you need some cash to make home renovations or pay off your kids’ college tuition, you should consider refinancing to tap into your home’s equity.
Refinance if You Want to Pay off Your Loan Sooner
If you have a 30-year mortgage and want to switch to a 15-year home loan, refinancing is an option. By converting to a 15-year mortgage, you will be able to pay off your loan sooner and save more money in interest. The caveat is that you will have to make higher monthly payments on a 15-year home loan.
Refinance if You Want to Eliminate Mortgage Insurance
If you don’t put at least 20 percent in down payment, you will be paying for mortgage insurance. Mortgage insurance can substantially increase your monthly payments. If your home has increased in value since the time you took the home loan, you may be able to eliminate mortgage insurance by refinancing your mortgage.
If you think you can qualify for refinancing in Lake Worth, FL, and want to refinance your home loan for reasons mentioned above, contact Fourpath Mortgage today at 954-507-7553 and complete your refinance application.