Why Refinance? 3 Refinancing Myths
As a homeowner, you might have questions about whether or not you should refinance your home. It is a serious financial decision, and one that must be carefully considered. It will not only affect your present economic situation, but your future as well. However, for many homeowners that are current on their payments and have good credit, it can be an extremely worthwhile decision. Unfortunately, millions of homebuyers are not taking advantage of historically low interest rates, rising home prices and favorable terms, especially if they have a HARP-eligible mortgage from Fannie Mae.
With that in mind, let’s talk about a few scenarios where it might make sense to refinance and refute some myths about refinancing to put you in a better position to make a decision:
Where Refinancing Makes Sense
- You’re paying more than 4.5% on your current mortgage: If you got your mortgage several years back, 4.5% might have seemed like a good number. This is not so today. It is very possible to refinance at a rate well below this. However, homeowners should be quick; this might be the final year to secure such a low fixed rate.
- You have a 15-year mortgage: If you are getting hampered by too high of monthly payments, refinancing your current 15-year to a 30-year mortgage might make a lot of sense. It will help you lower your monthly payment, so you can reallocate that money for other expenses and investments
- You have an adjustable-rate mortgage: Even if your current rate is low, an adjustable-rate can become more expensive later on when rates rise. Refinancing to a fixed-rate mortgage provides stability and avoids surprises later on.
- It’s too much work: Refinancing your home loan could help you save tens or hundreds of thousands of dollars over the lifetime of the loan. There are few better investments that will not only help you save now, but in the future as well.
- Fees: Some homeowners feel that the number of fees that come with refinancing simply doesn’t make it worth it. Our WAIVE Home Loan Program eliminates many of these pesky fees, so you can find an affordable plan. No appraisal fee, credit report fee or loan origination fee!
- It won’t save you that much: You’ll be amazed by how much you can save when you refinance. To get a better idea of how much you can save, please review our refinancing calculators.
If you have a single family mortgage in Miami, Boston or LA, OneUnited can help you refinance your home loan. You might be able to lower your monthly payment and interest rate to save big over the lifetime of your loan. We encourage you to contact us today, so we can help you go over your options.