Benefits of Mortgage Refinance in Sedona, AZ

March 27, 2024

Benefits of Mortgage Refinance in Sedona, AZ

By Published On: March 27th, 2024Categories: Mortgage Company, Mortgage Refi, Mortgage Refinance, Sedona AZ

A significant dip in interest rates can be an ideal opportunity to apply for a mortgage refinance in Sedona, AZ. Why? Because it can save you quite a significant amount of money. However, aside from saving money, there are more benefits to replacing your old mortgage with a new one.

Here are some compelling reasons to apply for a mortgage refinance in Sedona, AZ:

To shorten the loan term. A dip in interest rate can be a sensible way to shorten the loan term. For instance, you can move from a 30-year loan to a 20-year loan without significant changes in your monthly mortgage payment. In doing this, you can reap the benefit of reduced interest expense; paying off the loan in a shorter period makes that possible.

To lock in a fixed interest rate. A downward trend in interest rates can also be an opportunity to lock in a fixed interest rate from an adjustable-rate mortgage (ARM). Such a strategy is more popular as the end of an interest rate adjustment period nears. Refinancing your current loan provides an avenue to secure a lower fixed rate, saving you a substantial amount.

To remove private mortgage insurance. VA loans excluded, borrowers usually pay private mortgage insurance when they put less than 20% down payment. But how can refinancing remove mortgage insurance? If interest rates have dropped since you took out the loan, refinancing can save you money when loan-to-value (LTV) is less than 80% because of a reduced loan amount, an increased home value, or both.

To obtain funds from home equity. Home equity accumulates through mortgage payments, increases in home values, or a combination of both. As a borrower, you can do a cash-out refinance to access the equity in your home. You can use the money for different purposes, including financing home improvements or repairs, paying off high-interest debt, or paying for huge expenses such as medical bills, legal fees, and college tuition.

Are you looking for a reputable company to help in your mortgage refinance in Sedona, AZ? Look no further than Homeplus. Call us today at 800-810-PLUS (7587) for inquiries.