Are you thinking about refinancing your home in Belleville, Illinois? Home refinancing offers several advantages that vary from borrower to borrower, depending on what they hope to achieve. Here are four ways it can help you:
1. Make Your Interest Rate Competitive Again.
One of the most common reasonsBelleville homeowners refinance their mortgages is to get a lower interest rate and put more money back into their pockets rather than paying the banks.
When done right, home refinancing inBelleville, Illinois can save you thousands of dollars over the term of the mortgage, while also freeing up money now.
2. Switch Between Variable and Fixed Rates.
Another common reason for refinancing your home is to switch from a variable-rate mortgage to a fixed-rate mortgage, or vice versa.
SomeBelleville, Illinois homeowners value the peace of mind that comes with a fixed-rate mortgage — knowing exactly how much they will pay every month without the possibility of rising interest rates is worth a small premium.
Conversely, you may decide that you want to take advantage of a lower mortgage rate while also accepting the possibility that they may increase in the future.
3. Consolidate Your Debt.
ManyBelleville, Illinois homeowners have taken on debts, such as a car loan or a credit card payment, on top of their mortgage. These car and credit card payments often have high-interest rates, which means more money out of the pocket.
When you refinance your mortgage, you can consolidate all your higher-interest debts into one lower-interest debt. This can potentially reduce both the overall interest you pay over the mortgage term as well as your monthly payments.
The interest rate on a mortgage is typically much lower than the interest rate on other forms of credit, meaning refinancing your mortgage will help you save money on interest and pay off your debt faster.
4. Release Some Equity.
Because your home is likely your most valuable asset, why not release as much value from it as possible?
Your home equity is the difference between the present value of your home and the remaining balance on your mortgage. In layman’s terms, it represents how much of your home you actually own, and what portion is still owned by the bank. For example, if your property is appraised at $500,000 and you only owe $250,000 on it, you have $250,000 equity in your home. That is money that you can use to build wealth.
Not too long ago, the only way for an American homeowner to access their home equity was to sell their home and upgrade to a bigger place. However, home loans are much more flexible these days — you can tap into the equity in your home without having to sell it. Reviewing your mortgage will show you how much equity you have on your home, and refinancing will allow you to use this equity for large expenses — such as renovating your home or paying for your child’s tuition, for example.
Are you ready to refinance your mortgage? If so, you can schedule a time to sit down with a mortgage broker in Belleville, Illinois to explore all your options.
Looking for a Mortgage Broker in Belleville, Illinois?
If you are looking for an experienced and licensed mortgage broker in Belleville, Illinois, you’ve come to the right place — Compass Mortgage is ready to work for you. Call us today at (833) 638-7836 or contact us through our website to learn how we can assist you in making the right decisions regarding your mortgage.