Every New Year, people start thinking of new ways that they can make their resolutions stick in the long term. However, instead of setting yourself up for failure with goals that you simply know that you won’t commit to, consider putting your time and efforts into something rewarding enough to hold your interest: refinancing your mortgage.
On the fence? Check out MSN Money’s top five reasons to refinance in 2014:
Lower your Interest Rates – Take a minute to compare this year’s mortgage rates to the one you already have. Even if the numbers don’t seem big, refinancing could save you a lot of money in the long term when it comes to interest payments.
Shorten your Loan Term - Check out what your loan payments would look like if you chose to refinance into a 15- or 10-year loan. Shortening your loan term may end up saving you thousands on interest, and could possibly help you become mortgage-free much faster.
Combine your Current Mortgage Loans – If you find that your home-equity loan or line of credit has a higher interest rate than your current mortgage, you may want to look into refinancing both loans to see if your overall monthly payment can be reduced.
Take Cash Out – If you have any other high-interest debt, such as with a credit card, and your home has increased in value since purchasing it, you may want to consider refinancing to pay off that credit debt. You want to be sure that you can comfortably afford your new mortgage payment.
Reduce your Loan Balance – “Cash In” refinancing and paying down your mortgage balance may be your best option when it comes to eliminating private mortgage insurance payments or qualifying for a lower mortgage rate. The combination of refinancing and prepaying may help you become debt-free faster.
Before we begin to see rates rise throughout 2014, now is the perfect time to start thinking about refinancing. Get started today to see how you can save yourself a bit of money during the New Year.
(Source: MSN Real Estate)