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With today's low interest rates, refinancing your current home loan may work to your advantage. Talk to us about it.
There are a lot of reasons to consider refinancing—especially if the interest rate is lower than what you're currently paying.
Reasons to refinance:
Lower your monthly payments
Refinancing a mortgage can help lower payments by extending the life of the loan. If your original loan was for $200,000 over 30 years and you owe $110,000 now, you could refinance into a new loan to spread out those payments.
Convert an adjustable-rate mortgage to a fixed-rate mortgage
Homeowners that secured an adjustable-rate mortgage may find their rate increasing after the introductory period is over. Refinancing into a predictable fixed-rate mortgage will guarantee the rate of the loan remains steady.
Get cash for home improvements
If you need to replace your roof or want to make home improvements, you can obtain a cash-out refinance. This allows you to access the equity you've built up in your home and receive a check at closing. Your new mortgage will be your current balance plus the additional amount you borrowed.
Switch to a mortgage with flexible repayment options
Perhaps your first mortgage came with repayment terms that no longer work for you (interest-only payments, restrictions against early payments, or a balloon payment). If you want to switch to an adjustable-rate or fixed-rate home mortgage, you can easily refinance into one.
Save money on interest over the long term
If you experience an increase in income or finished paying off debt, you may have more cash at your disposal. You may want to use this cash to refinance your home mortgage into a shorter term. You'll have higher payments, but you can own your home faster, and in the long run, save money as you'll pay less interest.
*Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes. You should consult a tax advisor for further information regarding the deductibility of interest and charges.