Lower My Payment
Financial Benefits to Lowering Your Monthly Payment
Financial benefits can be gained through refinancing your mortgage and lowering your monthly payment. If you are having trouble paying your mortgage on time, a refinance could be the answer to reducing your financial stress.
You may desire a lower monthly payment due to changing life circumstances, such as:
- A reduction in income of one or more family members
- Increased living expenses in other areas
- A desire to increase your cash flow on a rental property
- Currently having a low rate; the risk of investment paying a higher return
There are many positive outcomes achievable through a refinance. These include increased access to cash, a reduction in taxes, a shorter loan term, and increased savings in the long run.
Extending Your Loan Term
One option for reducing your monthly payments is to increase the number of years you will be paying off your loan. Something to keep in mind when considering increasing your loan term is the added interest you will be charged for extending the duration of your payments. In turn, reducing your monthly loan payments increases the amount of time it will take you to pay back your loan. Although your payments may be lower, the added interest could outweigh the benefits of smaller payments in the long run.
Decreasing Your Interest Rate
If housing market conditions or your credit score has improved since your original home loan, you may be able to refinance to lower your interest rate. A lower interest rate will free up cash that can be put toward paying off your loan in a quicker time frame.
How to Begin
Refinancing is one of the most popular solutions for lowering your monthly payment. However appealing it may seem on the surface, it is a serious decision that should not be made hastily. Refinancing can often lead to paying more in the long term. Please take a moment to consider the full ramifications of refinancing with one of our Loan Officers today. We will discuss your options with you – empowering you with the knowledge you need in order to make an informed financial decision.