According to a recent survey, half of American families are living from paycheck to paycheck, struggling to increase their monthly savings. Only the top 5% of U.S. Households have additional income to match the rising housing cost since 1975. More people are considering to refinance their mortgages in Fort Myers to minimize their expenses and increase their savings. Here are four reasons why you should refinance your mortgage.
Shorten Your Loan Term
Refinancing can help you shorten the term of your loan. Currently, interest rates are at their record low, and this is the opportunity to have your loan recalculated to a shorter payment schedule with a much lower interest rate. A mortgage calculator may come in handy to see your new payment scheme.
Lower Interest Rates, Increased Savings
A 30-year mortgage is above 3% while 15-year loans may even yield a lower rate. Refinancing your mortgage in Fort Myers may help you get a lower interest rate and reduce your payments. This would also help you increase your monthly savings that you can invest or spend on other things.
Take advantage of the current low-interest rates and apply for a fixed-rate loan if you don’t have one. This could protect you in case the interest rates increase or change in the coming years.
Cash-Out Home Equity
This might be a good financial move to use refinancing to cash out your home equity. Depending on your situation, you can use this to start a new business or investment, given that you can responsibly manage your debts.
More Financial Flexibility
The current low-interest rates in the US economy is a good opportunity to refinance your mortgages. This can help you have more financial flexibility and even have more savings.