Refinancing Your Home
The Reichert Mortgage Team
At The Reichert Mortgage company, we are proud to serve the Colorado Springs community with our extensive knowledge in the complex but often beneficial route to refinancing your home. We have worked with hundreds of homeowners in Colorado Springs to make smart financial decisions based on their wants and needs. We are the best mortgage company in Colorado Springs for our high commitment to customer satisfaction with our expert knowledge on all things related to financing your perfect home.
BENEFITS OF REFINANCING
QUICKER PAYOFF
Shortening loan agreements to a 10 or 15 year plan will allow homeowners to pay off their loan quicker, however interest rates may rise.
LOWER INTEREST RATES
Refinancing may be helpful for those who want to change their adjustable rate mortgage (ARM) to a fixed rate, or vice versa.
CASH OUT
Borrowers with enough equity can take cash out to pay for major home improvements.
CONSOLIDATING LOANS
Refinancing allows homeowners to consolidate their loans averaging any high interest private loans.
LOWER PAYMENTS
The general rule of thumb is if interest rates fall by at least 2%, refinancing is worthwhile. For homeowners with a balance of $250,000 a lower interest rate can save a couple hundred dollars a month, which can help those struggling with payments.
Total finance charges may be higher over the life of the loan.
SHOULD YOU REFINANCE YOUR HOME?
There are several factors that govern whether refinancing your home is a viable, economic decision. Homeowners should consider three major things before refinancing:
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Your Credit Score – Always check your credit score before applying. This information is crucial in determining the amount you can borrow and the interest rate you may be eligible for.
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The Costs of Refinancing – Appraisal, attorney, title, origination, and closing fees can cost anywhere from $1,500 to $5,000 on average. It’s important to make sure you are getting a better loan agreement to replace your previous one.
- Interest Rates – Low interest rates means more money in the short term, but in the long term it means you are paying more over the life of the loan. High interest rates usually means the opposite. It’s important to consider your current income and long term financial goals before refinancing.
Refinance Your Home Today
There are no one-size-fits-all solutions when it comes to refinancing your home. Refinancing your home is typically a beneficial process that allows homeowners more affordable monthly payments, lower interest rates, and cash to invest in their home’s equity. Total finance charges may be higher over the life of the loan. If you have any questions about refinancing, feel free to contact us at Reichert Mortgage Team. We would love to talk to you about how this important decision may benefit you today!
