Refinancing can be beneficial for consumers! Below is a list of some of reasons why refinancing may be the right option for you.
Refinancing gives the opportunity to:
1. Save Money by reducing your interest rate and reducing your monthly mortgage payment. If you are going to live in your home 5-7 years refinancing may be a good option to lower your monthly payments. However, if you are planning to move and sell your home in the near future refinancing may not be a good option. You may not be able to recovered your closing fees from the refinance.
2. Reduce the term of your mortgage from 30 years to 15 years. Shortening the mortgage term can save you hundreds of thousands of dollars by accelerating the payoff of your loan and reducing your mortgage interest cost. However, your mortgage payments will be larger.
3. Cash out to consolidate your bills, payoff your HELOC, home improvement, or fund college tuition. Under the current tax code mortgage interest for owner occupants are tax deductible. Taking advantage of the tax deduction on mortgage interest for consolidating credit cards or other bills may be a great way to save.
Refinancing is not a one size fit all benefit. Each benefit needs to be analyze to assure the cost savings and benefit.
For more information on buying or refinancing a home in Hawai'i, please contact Solid Rock Home Loans at (808) 255-7498 or by e-mail at firstname.lastname@example.org.