A few wise financial decisions can secure your economic situation in the future by allowing you to save a significant amount of money. Within this context, refinancing your home in Normal, Illinois, may prove to be the most financially wise decision you can make…but only if your timing is right.
In this blog, we’re going to discuss why home refinancing in Normal, Illinois can be a smart financial move, and how to determine whether the timing is right for you.
What Are the Benefits of Home Refinancing?
There are many reasons why you might want to consider home refinancing in Normal, Illinois. These include (but are not limited to) the following:
Lower interest rates: The interest rate on your first mortgage may have been quite high. If you have an adjustable-rate mortgage (ARM), you might take advantage of today’s lower interest rates by refinancing your home. You can choose a fixed-rate mortgage to lock in the current lower rates. In other words, refinancing can offer you a lower interest rate on your mortgage than the current rate, which means that the required monthly repayments will be significantly lower than what you are currently paying. These monthly savings can add up to significant cost savings in the long run.
Shorten the term of your mortgage: You can also consider refinancing if you want to own your home before the term specified in the first mortgage agreement. When you refinance your home in Normal Illinois, you will be able to switch from a 30-year mortgage to a 15-year mortgage with a lower interest rate. It will certainly make the monthly payments higher, but you will own full equity in your home in much less time.
Cash refund: In some cases, you might also be eligible for a cash refund. You can then use the extra cash to consolidate and manage other higher interest debts such as credit cards or other personal loans.
With all these advantages, it should come as no surprise that home refinancing is gaining popularity among homeowners in Normal, Illinois.
Is It the Right Time to Refinance Your Home?
Only when you intend to stay in your home for several years can you see substantial cost savings from home refinancing. If you refinanced your house but are planning to list it on the market sometime soon, you will not save much money because refinancing has its own costs. Refinancing is only worth the expense if your total interest payments are far less than the refinancing costs.
To determine if refinancing your home in Normal, Illinois is something you should consider now, you can multiply the number of months you plan to own your house by the monthly savings. Compare this number to the costs of refinancing the mortgage. If your overall savings exceed the refinancing costs, then go right ahead and refinance your home without a moment’s hesitation. However, if the refinancing costs exceed your savings, home refinancing might not be a good option for you at this time.
Looking for a Mortgage Company in Normal, Illinois?
Are you looking for an experienced and licensed mortgage company in Normal, Illinois? If so, you can count on the experts at Compass Mortgage. We can help you with every aspect of refinancing your mortgage — from determining a refinancing goal, to navigating the different refinancing options, and everything in between. Call us at (877) 793-9362 or contact us online to learn more about how we can help you make wise and informed choices regarding your mortgage refinancing.