4 Great Reasons to Refinance in 2019

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Are you looking to ditch mortgage insurance premiums? Perhaps you’re looking to pay off your mortgage faster? Do you want to consolidate credit card debt or pay for some home improvements? A home loan refinance could help answer all of these questions for you.

Current rates are still very good. So you can definitely capture a lot of savings by locking in your low rate now. Refinancing can still make a lot of sense for many of you in 2019, depending on your financial goals. Here are four great reasons why you might consider refinancing soon.

1. Ditch Mortgage Insurance

The good news is that you’re not necessarily stuck forever with mortgage insurance payments. Once you reach 20% equity in your home, a refinance could be your ticket out.  If your credit score and other qualification factors are good enough to qualify for a conventional loan, mortgage insurance doesn’t have to be a fact of life.

Mortgage insurance payments aren’t required on conventional loans if you have a loan-to-value (LTV) ratio of 80% or less. To calculate your LTV in a refinance, divide your mortgage balance by the home’s value. (Call us for help.)

2. Shorten Your Term

Depending on your situation, it may make sense to refinance into a slightly higher rate and shorten your term. By doing this, you may find that you actually pay less interest over time than if you were to stay in your 30-year loan.

3. Consolidate Debt

According to Bankrate, the average interest rate on a variable rate credit card was 17.60% as of 2018. Even “low interest” cards averaged 12.52%. If you have a credit card balance in the thousands of dollars following the holidays, those interest charges can add up rather quickly.

If you want to consolidate your credit card debt, it might make a lot of sense to cash out some of the equity in your home.

4. Make More Possible

While it can be all too easy to think of your home as just the place where we entertain our families and sleep, your home is actually one of the biggest investments you can make. You can use the equity to your advantage for any number of things.

For example, if your retirement fund needs a boost, a cash-out refinance can be a great way to make that happen. It’s the same thing if you want to send your kid to college or add a new addition. Maybe it’s not even something that ambitious. Home issues tend to crop up at the most inconvenient time. Your equity can give you the funds to buy that new furnace or repair the roof you may suddenly need.

Sure, interest rates are up a little, but they’re up from near historically low levels. This may make refinancing a viable option for many. Is it the right time for you?

For more information, contact our office today!

713-802-0606 – 2233 Yale St. – texasloanstar.com

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