Yes, we know that the rates for a mortgage refinance, Tucson, have recently dropped to less than 3% again. No wonder why many are taking advantage of the trend. But, should you jump on the bandwagon?
There are plenty of reasons why you should refinance your mortgage. But there are also several compelling reasons why you should not. Depending on your current financial situation and your plans with the home, you may be inclined to use a mortgage refinance, Tucson, to resolve short-term concerns. However, if your reason is any of the following, you might want to reconsider your plan.
Reason #1: Because you need quick cash now
Take note that it will take about a month or so to refinance your mortgage, which means it will not offer any help if your purpose is for emergency use. Refinancing might just put you into more trouble if your goal is quick cash.
Reason #2: You are not staying in the home for a long time
If staying in the home for a long time is not your goal, refinancing might not be a sound idea. Of course, getting a lower monthly payment can save you money – only if you stay in the home long enough to break even on the loan’s closing costs. For instance, if refinancing cuts your monthly payment by $100 and you paid $5,000 in closing costs, it would take 50 months for you to start seeing actual savings from the new loan. That means you will instead lose money if you are not staying long enough.
Reasons #3: Make use of your equity for non-urgent issues
Cash-out refinancing can be a great way to address debt through consolidation. However, if you want to use your equity to live beyond your means or pay for something not essential, you may ultimately regret it when you are stuck paying a higher monthly payment for the remainder of your loan.
Here are two good reasons to refinance your mortgage loan:
- Reduce your interest rate and monthly payments
- Expedite the pay-off process
Online looking for a reputable company that offers mortgage refinance, Tucson? Contact HomePlus Mortgage today at (800) 810-7587.