Are you still trying to decide whether or not to refinance your home? Maybe you’re a bit apprehensive about doing it while not knowing what’s in store for us in 2021. If you’re unsure about pulling the trigger, there are certain advantages to refinancing that you need to be aware of. Granted, refinancing is time-consuming and there are some costs attached. However, the advantages go beyond lowering monthly mortgage payments and saving on interest rates.
Interest Rates Are Still at Record Lows
Even though you’ve probably been hearing this every day for quite a while now, the current interest rates are steadily holding at all-time lows. In fact, as of this past month (12/20), we saw 30-year fixed rates sitting at an average of 2.71%. Furthermore, this isn’t likely to change anytime soon. If CoreLogic’s 3-Year Housing and Mortgage Outlook report for 2020 holds true, 2021 will remain on track for record low interest rates and unparalleled home sales.
Pay Down Your Mortgage Quicker
Let’s say you recently took out some of your homes to pay off some or your credit card debt and one of your vehicles thereby significantly reducing your monthly liabilities. We don’t blame you for celebrating; just stay focused on re-routing that newfound cash flow into your property. You’re already used to paying out so much every month so why not work on mustering up the willpower to putting that additional income back where it will benefit you the most, namely your home. This could literally take years of the terms of your mortgage while at the same time saving you thousands in interest. Thus, it is a good way of saving more on the mortgage.
Pay Off Other Debts with Some of Your Home Equity
Most homeowners fail to realize how much their home’s value has appreciated since they bought it. Did you have any idea that you can use refinancing to obtain some of your equity and create liquidity for investments, generate additional cash flow for your household, or pay off any other high-interest debts you may have? If you’re paying interest on car loans, credit cards, or student loans, this could result in a significant financial improvement for you and your family. Is it not worth checking with a refinance expert today?
Refinancing With Liberty Capital Services
Whether you choose to refinance your home or not depends on your current situation and your financial goals. Ideally, the best financial strategy depends on how long you’re planning on staying in your home, how quickly you’d like to get your mortgage paid off, and your income. For more information, contact Liberty Capital Services today at (614) 505-0620. Call us now.