If you locked yourself into a mortgage that had favourable terms at the time, but things have changed since then, it might be time to refinance your loan. Refinancing your home loan can provide you with benefits that you might not have considered. You might not even realise that refinancing your home loan is an option. Unfortunately, many first time home buyers aren't aware that refinancing is a viable option. Read the list provided below. You'll find three great reasons to refinance your home loan right now.
Lower Your Monthly Payments
If you were locked into a higher interest rate when you purchased your home, you might be spending more on your monthly mortgage payments than you need to. Now that interest rates have gone down, this is the perfect time to refinance your home loan. You might not know this, but refinancing your home loan could lower your monthly payments, which would allow you to keep more money in your pockets each month.
Invest in Home Improvements
If you have home improvement projects that you'd like to tackle, but you just don't have the budget for them right now, it's time to talk to your lender about refinancing your home loan. One of the great things about refinancing your home loan is that you can tap into the equity you have in your home. The money you receive from refinancing your home can be used to take care of necessary repairs or home improvement projects that you've been postponing. Best of all, the improvements you make will increase the value of your home. The increased value can mean extra money should you decide to sell your home later.
Lock-In a Fixed-Rate Loan
If you have a standard variable rate loan on your home, now's the time to switch to a fixed-rate loan. One of the great things about getting a fixed-rate loan is that your interest rate will continue to stay constant throughout the loan's life. Unfortunately, that's not the case with a standard variable rate loan. With a variable rate loan, your interest rates will fluctuate throughout the life of the loan, which means your monthly payments could go up. When you refinance into a fixed-rate loan, your payments will stay the same, which means you'll have better control over your monthly budget.
Don't get stuck with a loan that doesn't suit your needs. Talk to a home refinance lender near you to discuss the benefits of refinancing your home loan today.