When you have an asset like your home, making an informed decision about refinancing is important. At First South, we know that with the number of reasons and options out there to refinance, you’re looking for the guidance of a financial partner to help you navigate the waters.
Refinancing may make sense for you if you’re looking to:
Lower your monthly payments.
If interest rates are lower than when you bought your house, refinancing may lower your monthly payment and the finance charges you pay over the life of the loan.
Stabilize your monthly payments.
Converting from an ARM to a fixed rate mortgage may keep your monthly payments from changing over time.
If you’ve built considerable equity in your home, you may refinance to consolidate your personal debt into one easy payment. Refinancing may reduce your monthly payments by decreasing your monthly interest charges.
Convert equity/cash out.
If you’ve built up considerable equity in your home, you may be eligible to refinance your existing mortgage to a larger loan amount. This would provide you additional cash that could be used for debt consolidation, home improvement, or for personal use.
Reduce the length of your mortgage.
Reducing the number of years on your existing mortgage often provides a significant reduction in interest costs over the life of the loan. Although this strategy may mean higher monthly payments, you will pay off your mortgage faster and become free of mortgage debt quicker.
To learn more about refinancing options through First South, visit your local branch, contact a mortgage lender in your area, or send our mortgage team a message and they’ll reach out to you directly.