Holiday Cheer Throughout the Year
The holidays are a wonderful time of year to show family and friends how much they mean to you. But the expenses that often accompany the season—from gifts and decorations to food and drinks for entertaining—can add up quickly, leaving you short on cash. With home equity hitting an all-time high[1] and mortgage rates remaining at historically low levels,[2] now may be a great time to consider a refinance to tap into your home’s equity.
The most common reason to refinance is to lower your interest rate. This reduces your monthly payments, keeping the holiday cheer going throughout the year. Oftentimes, there are additional benefits to refinancing, including eliminating mortgage insurance. If you made a down payment of less than 20% of the purchase price when you bought your home, you probably had to get PMI. If the current equity in your home exceeds 20%, you no longer need to pay for mortgage insurance.
Refinancing may also allow you to get a shorter-term loan. A shorter term allows you to pay off your loan faster and save money on interest. If your income has increased and/or interest rates have decreased since you closed on your current mortgage, you may be able to refinance into a shorter-term loan and still comfortably afford your payments.
Whether you’re ready to get started today or want to learn more, your HFG Licensed Mortgage Professional can help. We offer a true no-cost mortgage review to help you decide if a refinance is right for your unique situation. Expect an honest recommendation – even if we feel that sticking with your current mortgage is best! At HFG, you’re family. We care about you and your future.
[1] https://www.housingwire.com/articles/49963-homeowner-tappable-equity-reaches-an-all-time-high-of-63-trillion[2] http://www.freddiemac.com/pmms/pmms30.html
