There are a number of benefits in refinancing your existing home mortgage loan.
Mortgage refinancing can help you to :
- Lower your monthly payment
- Lock in a fixed rate
- Get cash from home equity
However, mortgage refinancing is not suitable for everyone. It is very important that you weigh all your options before considering on whether to refinance your loan or not.
If you do decide to take up on refinancing of your existing mortgage loan, you will have many options to consider, which is briefly outlined below :
Fixed rate mortgage loans - Lock in a low fixed mortgage rate that is guaranteed to never change. Popular terms include 15, 20, 30, and 40-year loans.
Cash-out mortgage refinance loans - Get extra cash without a second mortgage.
Adjustable rate loans - Flexible mortgage loan terms for your short-term goals.
Interest-only mortgage loans - Lower your loan payments and maximize your cash.
FHA mortgage loans - Guaranteed by the government, FHA loans offer more flexible guidelines than traditional mortgages.
To sum up, ensure you conduct adequate research as you are going to be the one who will ultimately have to bear due consequence on whichever type of mortgage refinancing loan you eventually decide to take on. Never take things for granted !
