{"id":1505,"date":"2023-05-24T09:20:51","date_gmt":"2023-05-24T09:20:51","guid":{"rendered":"https:\/\/xlnc.info\/instamortgage\/?p=1505"},"modified":"2024-04-23T15:10:55","modified_gmt":"2024-04-23T15:10:55","slug":"7-reasons-why-you-should-refinance-now-even-if-you-think-you-cant","status":"publish","type":"post","link":"https:\/\/xlnc.info\/instamortgage\/7-reasons-why-you-should-refinance-now-even-if-you-think-you-cant\/","title":{"rendered":"7 Reasons Why You Should Refinance Now, Even If You Think You Can’t"},"content":{"rendered":"

\"7-Reasons-to-Refinance\"If your rates are below the current market rate and you thought you couldn’t refinance – think again. There are several reasons to refinance. In some cases, even if you get rates higher than your current rates you could still end up saving a ton of cash. Stay with me and you will find out how.<\/p>\n

Below are 7 reasons why you should refinance. Whatever your current situation is, chances are you can find at least one reason for your benefit.<\/p>\n

Move to a Shorter Term:<\/strong> I wrote a blog post<\/a><\/span><\/strong> sometime back that went into the details of why moving from a 30 Year Fixed to a 15 Year Fixed could be one of the best financial decisions. In that post, I had mentioned that even if you have a rate that is below the current market rates, say 3.75% – moving to a 15 Year Fixed can save you hundreds of thousands of dollars. I considered an example of a $600,000 loan amount where the borrower was saving over $200,000 in interest cost by moving to a 15 year fixed mortgage. Yes – you read it right, over $200,000 (no typos here).<\/p>\n

Of course the larger the loan amount, the more the savings. But even on a relatively smaller loan amount, you can save a bunch load of money by moving into a 15 Year Fixed from a 30 Year Fixed. Alternatively, you can move to a 20 Year Fixed or a 25 Year Fixed mortgage.<\/p>\n

Two caveats being – You should qualify and you should be comfortable with a higher payment.<\/p>\n

Move to a Longer Term:<\/strong> Sometimes, it’s the other way around. You got into a short-term mortgage to save on interest costs. But because of changed circumstances, you are finding it difficult to service the steep payments. In that case moving from a 15 Year Fixed to a longer-term like 20, 25, or 30 Year mortgage may be a better idea. You will save on your monthly payment and get the breathing room that you are looking for.<\/p>\n

Get a Rate Quote to Refinance<\/a><\/strong><\/span><\/p>\n

Move From ARM to FRM:<\/strong> If you have had an Adjustable Rate Mortgage and getting worried about the future rise in rates, moving to a Fixed-rate Mortgage (FRM) may be a good idea. This is recommended if you plan to keep the mortgage for a very long time. Since the FRM rate is at a very low level, locking in a low fixed rate for the life of the loan gives you peace of mind and a good night’s sleep.<\/p>\n

Move From ARM to ARM:<\/strong> If your ARM loan is nearing the adjustment period and you are not planning to keep the loan for a long time, moving into another ARM will save you on interest cost. With 5 and 7 Year ARM pricing at least 1% lower than the fixed-rate, it makes sense to save on monthly payment and interest cost by moving to an ARM from another ARM.<\/p>\n

Use our free Refinance calculator<\/a><\/strong><\/p>\n\t\t\t

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Eliminate Mortgage Insurance (MI or PMI) Premium:<\/strong> Either your home prices have gone up or you have paid down enough on your principal or it’s a combination of both. You are at a point where you have 20% equity in the house or you can bring in some cash to do that. If that’s the situation and you currently pay mortgage insurance – it’s time to get rid of the pesky mortgage insurance.<\/p>\n

Remember, as a married couple filing jointly, if you make more than $110,000 a year, the mortgage insurance premium is not even tax-deductible.<\/p>\n

Get a Cash-out Mortgage:<\/strong> Whether you have been eyeing that brand new Tesla or you need to send your kids to an Ivy League college or it’s the round-the-world-trip you have been planning for – it all requires a lot of booty. And since you are not a pirate (and don’t even play one on TV), doing a cash-out refinance may be a great idea. Sure, you need to have a lot of equity and a cash-out refinance carries a rate higher than a regular refinance. However, it may still be a much less expensive option than borrowing from somewhere else or breaking into your retirement nest.<\/p>\n

Get a Lower Rate:<\/strong> If none of the above reasons apply to you, it could be that you simply have a higher rate than the market. Maybe you had bad credit when you got the loan or you were on a sabbatical in a cave during the last 5 years. If that’s the case, you have the most uncomplicated reason to refinance. Simply ask for our best rate quote<\/a><\/span><\/strong> and we will get you started on the refinance process.<\/p>\n

So there you have it – 7 reasons why you could and should refinance now. And if you were looking for a (bonus) 8th reason, the rates have trended about 0.25% below from where they started this year. So even if it didn’t make sense to refinance before, now is the time you should give it a serious thought.<\/p>\n

With FED projected to continue tapering its bond purchase these super-low rates will likely go up soon. Take action now, instead of being sorry later. Contact me at 855.644.LOAN<\/strong> or email me at Shashank@InstaMortgage.com<\/strong> and I will let you know if it makes sense to refinance or not. If you know me, you’ll know that I work for your best interest and not mine.<\/p>\n

Not ready to get started now? Check out our helpful guide – How to Shop Mortgage Rates Like a Pro<\/a><\/p>\n

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