Over the years since you purchased your home, there may have been many changes. Interest rates may have risen and fallen. Your income may have adjusted upward or downward. Your goals may have changed.
With enough changes, your original mortgage may no longer be ideal. But by refinancing, you may be able to save money and better meet your goals.
Home Refinance Benefits in Texas
When you refinance your home, here are some of the advantages that you can potentially look forward to:
- You might qualify for a more competitive interest rate, saving money every month.
- You can switch to a longer or shorter loan term, or between a fixed and adjustable interest rate.
- It might be possible to renegotiate certain mortgage terms or even change from one type of mortgage to another.
Is It the Right Time to Refinance in Dallas?
There are many different situations where a refinance could be the right move. Following are just a few examples:
- Are you on a fixed interest rate which is now higher than the going market rate? A refinance today could bring that interest rate down to one which is competitive today.
- Are you on an adjustable interest rate which is ballooning? If you want to put a hold on the process and give yourself more financial stability, you could adjust to a fixed interest rate by refinancing.
- Are you just barely paying your monthly bills with nothing left over for savings? If you are in a situation where your income has decreased, you can refinance to give yourself more years to pay off your loan, resulting in lower monthly payment requirements.
- Do you want to pay off your mortgage early? One way to potentially get around prepayment penalties is to reduce your loan term through refinance. In some situations, this may be less expensive than paying the penalties.
- Do you want to stop paying for PMI? If your current type of loan is one which requires PMI payments but you might now qualify for a different type of loan which does not, a refinance can save you quite a bit of money every month.
- Has your borrower profile improved? If you have had improvements to your income, DTI ratio or credit score, refinancing now could give you access to a more competitive mortgage overall.
- Do you want to consolidate your loans? Refinancing may be your ticket to streamlining your monthly payments and reducing your overall interest.