Many homeowners are taking advantage of lower interest rates and considering mortgage refinancing.   The last quarter of 2019 is here, and mortgage interest rates remain very low.  In most cases, no out of pocket expenses are due at the time of the refinance since the cost is typically included in the new loan.  In addition to lowering the interest rate, many homeowners have recognized other benefits of refinancing.

Plans to Renovate Your Home

A redesign or update of your home is in your future, and you are considering the best choice to pay for the improvements.  Taking advantage of the equity in your home and financing the home improvements through a cash-out refinance is a smart choice.  Your new mortgage will include the payoff of your current mortgage plus any funds needed for the remodeling.   Now may be an ideal time to move forward while the interest rates are still low.


Pay Off Other Expenses

You may have wedding or college expenses, or other unexpected expenses that arise.  A cash-out refinance may be a better option in terms of rate and predictability compared to a line of credit or a personal loan that could include a higher or fluctuating interest rate.  Consult your tax adviser also about your home interest deduction as it may reduce the total cost of refinancing.


Pay Off Your Mortgage Early or Lower Your Monthly Payments

Your income has increased and paying off your mortgage faster is a more realistic goal.  Since a shorter-term mortgage offers a lower rate, you’ll pay less interest overall, even though your monthly payment may be slightly higher.


If lower mortgage payments would be a better fit for your current situation, consider refinancing to a longer term.  Our mortgages do not include prepayment penalties, so the option to include extra principal to the mortgage payment at any time in the future is all yours.


The Ownership of Your Home Is Changing

If you currently own your home jointly with another person, and you wish to change the ownership to only one person, a refinance would be a good choice.  The previous, jointly-owned mortgage would be paid off, and the new mortgage written in your name only.  This refinance removes the other person from financial responsibility and ownership of the home.



Let’s review the specifics of your current mortgage together and see if a refinance is your best option.  Call Denise Brossette at (318) 798-7770.  Consultation is free!