Being a homeowner means building equity every time you make it through the monthly mortgage payments. More than 70% of Americans finance their family home purchase using mortgages and paying higher interest rates to see their dreams come true.
Prime Mortgage has been one of the first mortgage lenders in California to offer you a refinancing solution plan. Financial conditions are easy to change, and it would be more profitable to follow the current market interest rates by switching to a new loan plan.
Let’s see which are the benefits of refinancing your home in 2021, creating a shortlist for your ease:
1-Switch to A Lower Interest Rate Loan
You may realize that the Federal Bank has decreased interest rates at a historically low rate. That means commercial banks and mortgage lenders can borrow money paying interest rates that approach 0% levels. If you feel you are entrapped in an older mortgage plan forcing you to pay higher monthly installments representing outrageous and outdated interest rates, it’s time to think about refinancing.
Mortgage lenders would be more than willing to buy your current loan and swap it with a new one having a lower interest rate. In this way, you will pay substantially less every month and have more money to spend on your family.
2-Change to A New Mortgage Lender
Your traditional mortgage lender could be less communicative and cooperative with its customers. If you think there is time for a change, refinancing your mortgage and changing to a new lender would be the optimal solution.
A new mortgage lender not only can offer you better interest rates and terms of payment but also show you a more sympathetic profile when adverse events occur in your family. Being with a financial institution that cares about your needs, closely monitoring every customer situation would be far more important than sticking to the same low-quality services.
3-Move from Adjustable to Fixed Rate
Most people received their mortgages one or two decades ago when adjustable interest rates were the market standard. By that time, the market was gradually moving towards lower interest rates, and it would be a good idea to have an adjustable-rate mortgage to finance your house purchase.
Today we live in a new economic environment where interest rates are globally kept close to zero, giving people more incentives to borrow more money and take advantage of the liquidity abundance. A fixed-rate product would be the ideal choice for a mortgage switch. According to your amortization table, it could be a good idea to change your mortgage lender and find a new one offering better services and fixed rates till the end of your monthly installment plan.
4-Receive Cash Advances From Your House
After years of being a loyal mortgage payer, you may need to have some cash earned from your equity. Especially in California, house prices increase each year (often at a two-digit figure), and you may receive money from your house to cover unexpected expenses that may occur for your family.
Your present mortgage lender may not offer a refinancing service for your mortgage plan. If that’s the case for you, it will help change your mortgage lender and issue a new mortgage that could give you both a generous cash advance payment and lower monthly installments.
Following the market’s ups and downs can offer you a better quality of life when you see your house as an investment vehicle. Mortgage lenders are there to offer you new loans that are a lot easier to repay and can take advantage of your home price evaluation to grant you a generous capital to serve your needs and dreams.
5-Consolidate Other Loans
Besides getting a mortgage, most people also have been using personal, student, or consumer loans. Having to deal with credit card loans and overdue payments could incur unbearable interest rates, absorbing much of your monthly income.
Refinancing your house would be the best way to consolidate all these small loans to a big one, including your mortgage. A new mortgage lender would be more than willing to reduce your interest rate and use part of your equity to offer you better payment terms and longer loan duration.
Homeowners are all sitting on an ATM they could use each time they need cash to cover their needs. Finding a more competitive mortgage lender can offer you peace of mind and increase your monthly income. You are free to spend it anywhere you like and improve your lifestyle.