4 Reasons to Consider Refinancing an Existing Mortgage - Redefining Progress

4 Reasons to Consider Refinancing an Existing Mortgage

You’re pretty happy with the present mortgage, but could you do better? Things can change over time and what was once a good deal is no longer the best fit. If some situation could be helped by choosing to recapitalize your mortgage why not look into the possibilities? Here are four reasons why you may want to see what a refinanced mortgage could to do improve your financial situation.

Your Credit Score Has Improved Significantly

A lot of things have changed since you received the present mortgage. Your monthly income has increased quite a bit. At the same time, the amount of secured and unsecured debt that you carry is much lower. In fact, you have very little debt outside of the mortgage itself.

There’s a good chance that refinancing the mortgage could allow you to lock in better terms than you enjoy today. Along with a lower fixed interest rate, you could also find that other factors in the new mortgage save money. It may even be possible to finance for a shorter term and keep the amount of interest you pay lower. Until you see what lenders are willing to offer, you’ll never know.

Consolidating Debt Would Make Things Easier

Maybe you do have several debts that must be paid on every month. All or at least most of them carry a higher interest rate than your mortgage. Since there’s a reasonable amount of equity in the home, why not see if you can use it to pay off those other obligations?

Refinancing would allow you to tap into the equity and get the money needed to do this. Assuming your credit is a little better in the past, you could end up with a lower interest rate. It may even be possible to avoid extending the term beyond what you already have in place. This would simplify the monthly budget and add more positive line items to your credit reports, since those other accounts will now show paid in full.

Home Improvements are In Order

Wouldn’t it be great to upgrade the kitchen? Maybe you would like to finish the basement or attic and convert it into functional living space. Some upgrades to the wiring or the plumbing could also be in order. Refinancing the mortgage could free up the money needed to do these and any other type of home improvement you have in mind.

As you look around for refinancing, do see what can be done to find the best mortgage rates that you can command. This will make it all the easier to do everything you want and still end up with installment payments that fit easily into your budget. You get the benefit of enjoying the enhancements to your home without putting additional stress on your financial situation.

You Need Cash for Unexpected Expenses

Life can conjure up all sorts of surprises along the way. It can be in the form of an unexpected hospital stay, an accident that leaves you sidelined for a time, a divorce, or other life changes. While you will bounce back, there’s the matter of taking care of what’s going on right now. That’s where refinancing can make a difference.

Refinancing can provide the financial relief that you need right now. Doing so will help protect your credit score, settle debt arising from those unanticipated events, and in general allow you to rebuild your life.

These are only some reasons to consider refinancing. Take a good look at your situation today and consider how a refinanced mortgage would help. Once you find the right deal, life really will be a lot better.