To many, refinancing is a scary thought. That should not be the case for you, though. When many homeowners refinance, they find that their monthly payments decrease. This can help you save every month on your budget and save you several thousand dollars over the span of your mortgage. Below are some myths that many believe about refinancing:
It’s Too Late
For several years, we have been hearing that the interest rates on homes will go up. We have seen a few small increases over that time, but even now is a great time to refinance to lower the interest rate on your home. In general, the rule states that you should consider refinancing if your mortgage interest rate is greater than a percent over the market rate currently.
It Takes Too Much Time
If refinancing seems like a long and daunting process, that’s no reason to put it off. You simply need to talk with a lender to get the information you need to compare the available rates. There are even streamlining programs to help simplify the application process. Besides, if you can save thousands of dollars over time, isn’t is worth your effort and time?
ARMs Can’t be Refinanced
It can be rather stressful watching your ARM (Adjustable Rate Mortgage) increase after your introductory period. You may begin feeling a squeeze within your budget. Though a number of people believe they are stuck in their ARM, take heart that they can be refinanced. It is possible to even switch to a fixed-rate mortgage that is a shorter term. In fact, if you are looking to stay in your home for many years, you should certainly investigate refinancing your ARM.
As you can see, it is well worth the time and effort to consider refinancing your home. Don’t let the above myths hold you back from a better rate.