It is said that “home is where the heart is.” The place where you hang your hat is your home. Home… yeah, you know what I’m getting at. Almost everybody on the planet holds a special place in their hearts, minds, and souls for their homes. Check VIP Finance Brokers – Melbourne Finance Broker.
However, the home can be seen in a less romantic light: it is where we spend a significant amount of money.
Yes, our homes are a major financial investment for each and every homeowner, in addition to their sentimental and functional value. There are not only one-time closing costs and down payments to consider when purchasing a home, but there are also recurring monthly costs to consider. It’s almost a certainty that your home wasn’t cheap to purchase, regardless of its value or price.
Maybe you’ve been able to keep up with your mortgage payments for a few months or years, but then life throws a wrench in your plans. You may be able to afford your mortgage payments, but doing so requires you to make too many sacrifices in other aspects of your life. Perhaps you’ve been late with your payments on a regular basis, and you’re on the verge of going into default.
A mortgage loan refinance may be necessary in certain circumstances.
When Do You Refinance Your Mortgage Loan?
If you are having difficulty paying your monthly mortgage payments or just want to save some money like anyone else, refinancing your loan is an excellent way to lower your payments.
Although there is no one-size-fits-all method for determining when it is best to refinance your house, there are some guidelines to follow.
a. If you know that mortgage rates (such as 15-year fixed or 30-year fixed) have dropped by at least 0.5 percent to 1 percent since you got your new mortgage, you should consider refinancing.
b. your credit score has increased since you last refinanced; c. you’d like to extend the duration of your loan from 15 to 20 years; d. you have equity in your home that you’d like to cash out; e. you’d like to extend the term of your loan from 15 to 20 years; f. you’d like to extend the term of your loan from 15 to 20 years; g. you’d like to extend the term of your loan from 15 to 20 years; (turn into cash)