What are the Benefits?
Get a lower interest rate and monthly payment
By securing a lower interest rate, you have the potential to save thousands of dollars over the loan's term. Additionally, a lower interest rate may lead to a lower monthly mortgage payment. These savings could help you pay off high-interest debt, increase your savings or allocate more funds toward your retirement.
Pay off your home loan early
Refinancing can enable some borrowers to decrease the term of their loan. If you've been repaying your loan for several years, a reduction in interest rates can enable you to switch from a 30-year loan to a 20-year loan without a considerable alteration in your monthly mortgage payments. Since the loan is paid off over a shorter period, you may experience reduced interest expenses.
Lock in a fixed interest rate
Borrowers who have adjustable rate mortgages (ARMs) may opt to refinance their loans to obtain new ones with a fixed interest rate, particularly if an interest rate adjustment period is imminent and a lower fixed rate can be secured.
