Considering refinancing your home loan? When’s the right time to refinance your current mortgage? Here at MortgageBase, we specialize in providing jumbo and super jumbo mortgages, and we provide home loan refinances. We’re experts when it comes to refinancing (and anything surrounding jumbo and super jumbo loan products). So today, we’re taking some time to discuss the reasons you may have to refinance your home loan.
Reasons to Refinance With a Jumbo or Super Jumbo Mortgage
It’s true, refinancing does come with some expenses. However, there are benefits to refinancing your loan, and it can provide unique opportunities to individuals in specific financial positions.
Those Seeking Lower Mortgage Rates
Often homeowners seek to refinance a home when mortgage rates are low. In this way, they can attain a better rate than their current home loan, and they’ll have lower payments. That can mean major savings over the lifetime of your refinanced mortgage. Take note, you’ll have to refrain from selling your home for a few years to recoup the expenses of refinancing.
Those Seeking to Shorten Their Loan Payment Timeframe
On the flip side, some homeowners seek to refinance their mortgage when they can pay more now than they’ve been able to in the past. If you have a 30 year mortgage, for instance, and you’d like to have your home payed off in 15 years, you can opt to refinance your mortgage. Your monthly mortgage bill will take a bit of a leap, but you’ll pay into the equity of your home much more quickly.
Combining Your Mortgages into a Jumbo or Super Jumbo Mortgage
If you have multiple outstanding mortgages, you can combine your mortgages into one of our jumbo or super jumbo mortgages. Combining your mortgages means one bill per month, and that expense may be less than the combined expenses of your current mortgages.
Those Looking to Consolidate Their Debts
If you have outstanding debts, especially debts with high interest rates, it may be beneficial to refinance your mortgage, pull out funds from the equity of your home, and pay off those debts. If, for instance, you have maxed out a few credit cards, you’re likely facing major monthly bills to cover interest, and that interest can be astrological. Instead, you can pay off that debt, cancel those accounts, and start rebuilding your finances since you’ll only have the obligation of your new refinanced home loan.
Those Searching for Stability
If you’re currently borrowing on an adjustable rate mortgage (ARM), and your initial fixed-rate period is coming to an end, you may be nervous about the state of the mortgage market and the interest rate you’ll have after that period ends. Instead, you can attain a fixed-rate mortgage by refinancing. Locking into the right interest rate on your mortgage can mean security and peace of mind.
Are you looking to upgrade your home? Or do you need a new vehicle? You can pull funding out of the equity of your home through a mortgage refinance. Using a home loan refinance may set you back on your payments a bit, but it’ll give you the financial wiggle room that you need right now. An interest-only jumbo or super jumbo mortgage may be an optimum option! Learn more about our HELOC interest only jumbo and super jumbo mortgages here!
If you think that a jumbo or super jumbo mortgage refinance makes sense for your current financial position, feel free to give us a call! MortgageBase is here to connect you with excellent mortgage products at competitive rates.