In the span of just one year, refinance applications surged by 300 percent, according to the Mortgage Bankers Association.
With favorable borrowing terms, homeowners are as motivated as ever to take advantage of these conditions and reap the short- and long-term benefits of a refinance.
Homes refinances pushed the volume of total mortgage applications up 1.5 percent recently. What’s more impressive is that refinance applications were 314 percent higher compared with the same time one year ago.
Consumers are simply responding to low rates and are taking advantage of the benefits that arise from a refinance. If you live in Roseville or somewhere nearby, let us work with you to help you maximize on your new investment.
Here are three positive things you may be able to accomplish when you refinance your home:
Lower rates, smaller mortgage
Generally, the time to refinance your home is when current rates beat out what you’re paying on a month to month basis.
By securing a lower rate, you can begin to enjoy savings on your monthly mortgage payment, which will carry over through the life of the loan.
Cash-out refinance
Homeowners with equity can take advantage of lower borrowing terms, especially if the value of their home has increased substantially. When you decide to do a cash-out refinance, your current loan will be replaced with a new loan that’s larger than what you currently possess. The balance goes toward whatever you owe and the remainder can be used to make home improvements, pay off other debt or go toward other financial needs.
Stability
If you currently hold an adjustable-rate mortgage, you can refinance and opt for a fix-rate loan for increased stability and peace of mind.
If you have any questions about these options, contact us today.