There are many reasons that a family may want to consider refinancing their mortgage. However, it is always a good idea to talk to someone who fully understands mortgage refinancing before they decide to commit to a refinance. These are the most common kinds of reasons to refinance your mortgage:
If you took out a mortgage when the interest rates were high, they may have dropped since then. However, if you have a fixed rate mortgage, you may be stuck with those high interest rates. If you refinance, you can take advantage of the lower mortgage interest rates.
Sometimes it is easier to take all of your debt and manage it using one payment. Refinancing your mortgage will allow you to take the equity held in your home to pay off other debts, so that you just need to worry about paying your mortgage payments
Change from Adjustable to Fixed-Rate Mortgage
Many times people take out an adjustable rate mortgage thinking they will only live in the house for a few years on a low interest rate. However, circumstances change and they may stay in a home longer than they originally expected. Then, they may discover that their payments may be less on a fixed-rate mortgage. A mortgage refinance will allow a homeowner to switch from the adjustable rate to a fixed rate mortgage.
There are consequences to refinancing your home, including closing costs and repayment penalties. However, the benefits of a mortgage refinance may outweigh the consequences. Talk to our experts at Reverse Mortgages of Southern California to help you decide if mortgage refinancing is the best option for your family.