Refinancing a mortgage means paying off an existing loan and replacing it with a new one.

Reasons you may want to refinance include:

• Covering tuition costs

• Home renovations

• Purchasing a new vehicle

• Investing in a new property

• Other investment opportunities

Before choosing to refinance it is important to look at your financial situation as well as the advantages and disadvantages of refinancing.

Some advantages of a refinance include:

• Lowering your interest rates – a lower interest rate usually results in a lower interest costs and give you significant savings over time

• Changes to the loan term or type

• Consolidating debts – if you have multiple loans, it may make more sense to consolidate them into a single loan at a lower interest rate

• Paying off a loan that needs to be paid off by a specific date

• Lowering your monthly payment

Some disadvantages of a refinance include:

• Transaction costs

• Higher interest costs

• Lost benefits

As your trusted mortgage agent, I will work with you to look at your specific situation and determine whether a refinance makes sense for you.

For more great mortgage tips or to discuss your mortgage needs, please call Erica Vincelli today!

Posted in Blog, Mortgage Information, Real Estate AdviceTagged investing, investment, money, new year, real estate, refinance, saving