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And why you would?
Lowering Your Payments
Are getting reduced monthly payments and a lower rate your main
refinance goals? If so, applying for a low, fixed-rate loan
might be a good choice for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies – variable rate mortgage (VRM). Even when rates come up later, unlike with your VRM, when you close a fixed rate mortgag
e, you set that low-interest rate for the term of your loan. If you are planning to stay in your home for at least five more years, a fixed rate mortgage may be a particularly good fit for you and even if you choose to move there are mortgages which are portable and you don’t have to pay the penalty.
Getting Out some Cash
Is “cashing out” your primary purpose for refinancing? It could be you’re planning a special vacation; you need to pay college tuition for your child, or you plan to renovate your home. In this case, you’ll want to apply for a loan higher than the remaining balance of your current mortgage. With this goal Your mortgage payment may be even lower than your current one, why wouldn’t you do it?
Consolidating Debt
Perhaps you’d like to cash out some of the equity in your home (cash out) to put toward other debt. If you have any debt with higher interest (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Make Your Monthly Payments Fit Your Budget
Have you seen enough commercials about credit card and other types of debt? Do you feel like when they play all these commercials to consolidate bills that they’re talking directly to you?
Have you finally decided it is time to take advantage of these offers and get your finances under control? If your goal is to consolidate bills and bring your finances back under your control, a refinance of your mortgage that will allow you to do this is exactly what you need.
If you are paying each month on three or four different credit cards at an interest rate of at least fourteen percent, those monthly minimums will certainly add up. Each of those balances are charged the interest rates each month. When you consolidate bills instead of spreading them out, you are being charged interest on only one amount at what can be a fixed and, usually, lower rate than what your credit cards will charge you.
Several mortgage companies are now offering mortgage refinances that are specifically designed to help you pay off your credit cards and consolidate bills by rolling those bills into your mortgage amount. One of the benefits of getting this type of loan is the fact that you will go from several bills each month coming due at different times to one bill due at the same time each month. In this way, you will only have to keep track of one bill each month and this bill will cover your mortgage as well as your debts. The only other monthly bills that you should have coming in will be your utilities.
In combining all of your debts, you are actually saving money each month. As stated earlier, when you consolidate bills in this way, you will be charged interest on one amount rather than several amounts. Since mortgage loans have lower interest rates than credit cards, you are charged less each month, which leaves more money in your pocket each month. This extra money can be used to pay off extra each month toward your balances or any other way you decide.
Consolidating bills in this way is a decision that will make life easier and give you control again of your finances. Your interest rates will be lower as will your monthly payment. You will save money while paying off your bills and keeping your credit score high.
Get Your mortgage refinanced today and save.
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