Robby Oakes Mortgage

Chapel Hill Mortgage Lender | Robby's Blog about Mortgages in Raleigh, Durham, Chapel Hill, and Crystal Coast area of NC

  • Our Main Site
  • About Us
  • Meet The Team
  • Resources
    • First Time Home Buyer Tips
    • First Time Home Seller Tips
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Glossary
  • Blog
  • Contact Us

How Do I Know If It’s a Good Idea to Refinance My Mortgage?

December 14, 2022 by Robby Oakes

You Ask, We Answer: How Do I Know If It's a Good Idea to Refinance My Mortgage?Are you interested in paying less per month on your mortgage? Or perhaps you would prefer if your mortgage was paid off a couple of months – or years – faster? If you are a homeowner with a mortgage, one option that is open to you is refinancing. In today’s post, we will explore the topic of mortgage refinancing and how to know if it is a good idea.

How Does Refinancing Work?

In short, refinancing is a process in which pay off your existing mortgage and borrow a new mortgage under a different set of terms. In most cases, homeowners will use the funds from the new mortgage to pay off the old one. Depending on the terms of your new mortgage, there may or may not be cash left over which you can use to invest, pay down debts, make renovations or for other purposes.

Refinancing To A Lower Interest Rate

Mortgage interest rates tend to fluctuate over time and because of this, refinancing to a mortgage with a lower rate is quite popular. If you initially borrowed your mortgage when interest rates were at 5%, you may be able to lock-in a new mortgage at a lower rate. Note that it can be tough to try to “time” the mortgage market, so check in with your mortgage professional to find out if the time is right.

Refinancing For Lower Monthly Payments

Another great use of refinancing is to reduce the monthly payment required on the mortgage. If you have ten years remaining on a 20-year mortgage, refinancing to extend the payments out to 15 years will lower the monthly payment.

Refinancing To Eliminate Other Debts

Finally, many homeowners will refinance their mortgage to use some of the home’s equity to pay off other debts. For example, a family might have $25,000 in debts that are being charged a higher interest rate than their mortgage. If they have built up enough equity, they can refinance and draw out $25,000 from the home’s value. This shifts the debt from the higher interest areas into the mortgage, where it can be paid off over time.

As you can see, there are many reasons why you might want to refinance your mortgage. To learn more about the refinancing process, or to discuss your options, contact us today. Our professional team of mortgage advisors is ready to help you choose the path that best suits your financial needs.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage, Mortgage Refinancing


  GET MY FREE QUOTE!


International Unrest Influences Mortgage Market

International Unrest Influences Mortgage Market

How can we help?

  • This field is for validation purposes and should be left unchanged.

Connect with Us

Recent Articles

  • Are Firefighter Mortgages Legit?
  • How Do I Know If It’s a Good Idea to Refinance My Mortgage?
  • How To Finance A Home Renovation

Quick Links

  • Our Main Site
  • Free Rate Quote
  • Contact Us
Copyright © 2018 | Corporate Investors Mortgage Group | NMLS# 39460 | Licensed to Do Business in the State of NC | NMLS Consumer Access Portal | Privacy Policy
Located in North Carolina.
Call 252-497-8330.

Copyright © 2023 · Powered by MySMARTblog