Filling out loan paperwork isn’t anyone’s idea of fun. Still, that doesn’t mean it’s not worth doing. In some cases, people are putting off filling out applications to refinance their homes, even though they could save substantial amounts of money if they move forward and do so. If you have a mortgage at a high interest rate, an adjustable rate mortgage, a need for money to pay off high-interest debt, or similar issues, choosing to Refinance Loan may be the best financial decision you could make.
People often opt to Refinance Loan when they realize that the existing terms of their mortgage aren’t to their advantage anymore. Often, this is simply a matter of loan rates changing over time. Depending on what’s happening with the economy and your personal finances, you may have a loan at a rate a couple of percentage points higher than what you would have to pay if you were taking that same loan out today. If that’s the case, choosing to refinance could save you a lot of money. Remember, even a very small difference in percentage makes a very big difference in how much you spend when it’s being applied to a number as large as the value of a house.
Refinancing is also sometimes used as a way to get access to the equity in a home to help improve your overall financial life. If you’ve had to take out debt at a high interest rate for other purposes, you may be struggling to keep up with the payments. Credit card companies can demand rates of close to 30 percent, which makes it hard to make any progress in paying off what you owe. If you’ve found yourself deep in credit card debt and you’re committed to digging your way out of it, choosing to refinance to move that debt into your mortgage will allow you to pay a lot less in the end because of the significantly lower interest rate.
Whatever your reason for considering refinancing, you can contact Village Mortgage for help. They work with home owners in a wide range of situations and help them to put together home loan packages that are a good fit for their needs.
©2014 Village Mortgage Company, NMLS #6331, CT #6331, RI #6331, Mortgage licensed lender in MA ML6331. This is not an offer to extend credit to any individual who may be entitled to a more complete disclosure per RESPA, TILA, HOEPA or any other more applicable federal, state or local law or regulation. Rates, terms, fees, products, programs and equity requirements are subject to change without notice. Village Mortgage, Equal Housing Lender.