October 9th, 2016 | Refinance
Managing your finances is as important as earning them.
Significant proper watching and administering your resources is the key to successful financial management.
Since imprudent investments might result into the draining of hard earned monetary resources, diligent management of income enables one to enjoy maximum benefits even by incurring minimum expenses. Careful analysis of your financial situation is more important when a mortgage on your home is involved. At the time of purchasing a home, due to time limits or other inevitable circumstances one might be compelled to accept loan at a higher interest rate than you could obtain at that time. Also, there may have be situations when an earlier rate of interest on loan was higher than the current market rate charged by lenders. In such a financial scenario it is always wise to reconsider all of your monetary state of affairs.
As lending has gotten more competitive with every passing year, it is the consumer who benefits from that kind of market competition. As a result of growing financial system, many options are presented frequently to attract potential purchasing as well as investing possibilities. In this competitive environment, lenders would be ready to waive certain costs, such as administrative and/or underwriting fees, as well as other application expenses incurred during refinancing. This is an ideal situation to opt for refinancing as in such situation one can avail lower interest rates with minimal cost involvement. It may be amenable to obtain an interest at a bit higher than the current market rate to save even more money in your refinace transaction. One’s individual financial circumstances need to be reviewed to determine if it would be advisable to accept this approach.
The time that has passed from obtaining your current mortgage is a vital consideration. Generally, if three years or more have passed since first obtaining it, a fresh look at refinancing may be advantageous. Lower prevailing interest rates could reduce total monthly payment amounts significantly. 1 STOP Mortgage gives you a free courtesy refinancing analysis to help you determine the best options for you. Just give us a call at (901) 388-1588.
Shortening the overall term of mortgage is another appealing factor as it leads to faster building of equity as well as achieving paying it off faster. A shorter mortgage term at lower interests results in greater monthly payments, but in the end one benefits by paying less overall interest on the total loan amount.
One more important factor that deserves consideration is the option to do a cash-out refinance.
In certain situations one might need some extra money for various purposes: home improvement, college costs, and other needs which the home equity built up during the years may help you achieve those goals.
In this instance you refinance for more than the balance amount left on loan. This is achievable even without increasing the amount of monthly installments in a lower interest rate market. Wise use of extra income made by refinancing is always important. Utilizing this manner to pay off certain short-term loans such as a car loan or credit card debt is one of the best ways to use that extra cash.
Call us today at (901) 388-1588 to schedule a full analysis of the financial benefit a refinance in this enviable interest rate climate could benefit you and help you achieve your goals and objectives.