Too often than not, do we see people hear the word refinancing and instantly cringe. For whatever reason, refinancing carries a negative connotation with it. However, refinancing can make the most sense in many different scenarios, although, we do agree that we would cringe too if it were done in the wrong setting. The reason being is that refinancing your mortgage is essentially paying off a current loan and then replacing it with an existing one. Adding more loans into the equation simply does not always make financial sense. You may be wondering when it does make sense, and don’t worry, our team will break that down for you. Here at Ace Mortgage Loan Corp., we have a team filled with home loan experts who can point you in the right direction. Not sure if refinancing is right for you? Keep reading below then reach out to our team to get assistance on your individual situation.
Scenario 1: You Want a Lower Interest Rate
One of the more common reasons people will refinance is so they can lower the interest rate on their home. Doing this can end up saving people a lot of money in the long haul. We generally recommend refinancing for this reason if you can reduce your interest rate by 1% or more. It may not sound like much, but it will save a lot of money. Doing this will also shorten the term of your mortgage, so it’s also a great idea if you are trying to pay off your home quickly.
Scenario 2: You’re Moving Soon
This scenario is also pretty common for those who have already paid off the majority of their home and want to move or those who are elderly. Those who are looking to move but want to keep the home tend to refinance so they can pay off the loan faster. This will of course make your loan payments each month much higher; however, if you are looking to move into a new home then this could be in your best interest. While many people do not pay off their homes before moving, some choose to do so. This decision is based on your unique situation. If you aren’t sure if refinancing is a good move for you, our team at Ace Mortgage Loan Corp. can help you out. Sometimes speaking with a professional can help weight the pros and cons.
Scenario 3: You Want to Consolidate Debt
Consolidating debt is another reason for homeowners to refinance their mortgage. This is a great idea for those who want to pay off their high-interest debt; however, it isn’t for everyone. Most people find that they need to be more financially strict with themselves during this process. This may be more difficult for some than others. Sitting down with an expert from Ace Mortgage Loan Corp. will help put this in perspective. Sometimes we may think we are in a place to be strict with money but may find it more difficult than we thought. While usually, the risk is low, in this case, the risk is much higher. But, if you think you are financially strict with yourself, then you may benefit from refinancing your mortgage. This option is also common for those who have other kinds of debt in their life that have very high-interest rates. Debt such as student loans and car payments. By doing refinancing you may be able to help out with some of these other burdens.
Contact Ace Mortgage Loan Corporation Today!
If you have been considering refinancing your mortgage we recommend talking to a team of professionals first. Refinancing can either be very beneficial for people or end up piling on more debt. While deciding whether to go for it or not is a personal decision, having a team to help you weigh the pros and cons can ensure you make the best decision for you. Here at Ace Mortgage Loan Corp., we have specialists who know all there is to know about refinancing, and the best part is that they can help you. To learn more about our services and refinancing, give us a call today at (954) 777-4774. We are looking forward to assisting you!