It is imperative that you fully understand why you would want to go for refinance mortgage, Austin, TX. Note that the decision you make on this will have a great impact on your life in the long run. So, it makes sense that you are careful in your action; act only based on the goal you want to achieve. Having said that, the following are some cases why go for mortgage refinancing:
To take cash out. This is done by refinancing your mortgage for a higher loan amount than what you owe and take the difference. And, take note, the amount you receive is tax-free. Indeed, one compelling reason to go for refinance mortgage, Austin, TX.
Interest rates have gone down. This is another reason why you might consider refinancing your mortgage. According to the White House, the average homeowner could save about USD 3,000 a year by taking advantage of drops in mortgage interest rates. So, why not? But the question is: what should be the threshold to justify mortgage refinancing? Well, homeowners have varied preferences; some are okay with 0.5% others want as high as 2%. Just do the math and make a decision on figures you are comfortable with.
ARM to Fixed Rate Mortgage Conversion. Others apply for mortgage refinancing to take advantage of a good opportunity to convert an Adjustable Rate Mortgage to a fixed rate mortgage. This is especially true when there is an upward trend in interest rates. If you think you are in a similar situation, you might consider this refinancing option. But then again, always figure out the number and do based on what the numbers tell you.
To lower your monthly payment. This is considered as an extreme case, but in case you face such a situation, refinancing could be a good course of action you can take. There may come a time in life that paying your current monthly mortgage due will become a burden. Refinancing offers an opportunity to take some of that burden off your shoulder when you refinance your mortgage to a term that is longer than what is left on the mortgage, reducing your monthly dues.
Have more questions about refinance mortgage, Austin, TX? Talk to an expert at HomePlus Mortgage today.
Call us today at (512) 949-3385.