Benefits of Reducing Your Interest
Reducing your interest rate to capitalize on more favorable market conditions can offer you both short- and long-term benefits.
- Lower monthly payments: Typically, refinancing to an interest rate that’s lower than your current rate by at least 1% will translate to noticeable savings on your monthly mortgage payments.
- Shorter loan terms: Lower interest rates may enable you to change to a shorter-term mortgage. As a result, you can pay down the principal balance and build equity faster – and you may pay less total interest.
- Rate stability: If you currently have a variable interest rate, you may be able to lock in to a more stable fixed rate mortgage that gives you consistency over time – especially good news if the stable fixed rate is a low one.
To help decide if refinancing for a lower rate will work for you, call an experienced loan consultant at (800) 210-8849.