Top 10 Reasons to Refinance Now

With mortgage rates being at an all time low there are so many reasons to refinance right now.

1. Reduce your payment

2. Lock in a low rate

3. Give your self a two month payment break

4. Take out cash to payoff high debt credit cards

5. Take out cash for home improvments

6. Payoff student loans

7. Get out of an adjustable rate mortgage

8. Get a shorter mortgage term

9. Get out of an interest only loan

10. Take advantage of new loans for those without equity

With interest rates being as low as they are right now why not take advantage of the opportunities? Who doesn't want a lower interest rate? If you can take cash out payoff all of your debt and still have the same mortgage payment or lower why wouldn't you? Those are all very valid questions.

Right now you can get a 30 year fixed rate mortgage around 5% if you are like most Americans you probably purchased your home in the past 5 years and you did this through obtaining a first and second mortgage. Now you have the opportunity to combine these two loans into one and save on average $500 dollars a month by doing so.

Source: www.yourbankloan.com
Source: www.lowestjumborates.com

In 2003-2007 the majority of Americans refinanced or purchased with an adjustable rate mortgage. They ranged from 2-7 year adjustment periods. These periods are coming due and you can refinance right now and lower your payment rather than waiting for the adjustment period to come due and having your payment go through the roof. Many people have busy lives and don't have time to think about these things but truthfully these things could have an affect on your long term goals.

Think about it like this, if you are paying a mortgage of $1800 a month right now at 8.75% and you can refinance to say 5% and your new payment is $1375/mo. Over 30 years of your loan you would save $153,000. So if you took the difference and put it into a savings account with interest you could retire with an extra $175k plus. These are just a few ideas of how you can save money monthly and over your lifetime by refinancing.