Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

Five Reasons to Refinance Your Mortgage

Banking professionals suggest mortgage refinancing when homeowners want to replace their current loan with a new one, often to reduce monthly payments or lower interest rates. With a mortgage refinance, your current loan is paid off and replaced with a new one.

This can be a great option for borrowers with good credit who want to alter their current loan. But refinancing could be risky for borrowers with less than perfect credit.

Check out our list of reasons to refinance and see if you could benefit from refinancing your current mortgage.

5 Reasons to Refinance

  1. Lower interest rates—If mortgage rates have dropped since you first took out your loan, you could secure a lower rate by refinancing.
  2. Lower monthly payment—Lowering your interest rate could have a dramatic impact on your monthly payment. If you intend on staying in your home for several years, lowering your payment could help you save.
  3. Shorten loan term—When interest rates fall, homeowners can often significantly shorten their loan term by refinancing without much increase in their monthly payment.
  4. Convert between adjustable-rate and fixed-rate—With adjustable-rate mortgages, your initial interest rate may be low and and then increase over a period of time. Refinancing to a fixed-rate mortgage could allow you to avoid an increase in rate.
  5. Cash out to make a large purchase—If you have equity in your home, refinancing enables you to cash out on that equity without taking out a loan, such as a home equity loan. A lot of people will use this cash to pay for home repairs, college tuition, or make a large purchase, such as a car. These types of refinances are typically easy to complete and may even be tax deductible.

If you still aren’t sure if a mortgage refinance is right for you, visit our online refinance calculator to see how much you could save, or visit your local First Bank branch to speak with a mortgage specialist.


Loans subject to credit approval.

———
Sources:
https://www.investopedia.com/mortgage/refinance/when-and-when-not-to-refinance-mortgage/

Trending Topics

First Bank in Asheville, NC: Serving the Local Community

If you live in the greater Asheville, NC, area and are searching for a nearby bank that meets your needs, look no further than First Bank¹. From Biltmore Village to Downtown Asheville to Historic Montford, we serve...

Get a Hassle-Free Checking Account with First Bank

Figuring out where to get a hassle-free checking account doesn’t have to be hard. First Bank offers five different types of hassle-free checking accounts that don’t have monthly maintenance fees as long as...

Learn How Much You Should Be Saving Each Year

Wondering how much you should be saving each year? Many specialists believe in the 50/20/30 budget: 50% is spent on necessary expenses (e.g. credit card bills, rent), 20% of your income is put into...

Your Community Bank – Asheville NC

At First Bank, we believe that part of being your community bank in Asheville, NC, means offering services that meet the needs of everyone. From checking and savings accounts to mortgages and personal loans, First Bank...

Local Banks Near Me

When looking for local banks near you, look no further than your neighborhood First Bank. With locations across North Carolina and South Carolina, you can count on us for all of your banking needs. When you bank with...

Community Bank for Small Business

Since 1935, First Bank has been the go-to community bank for small business owners. Our first branch opened in Troy, NC, where we helped farmers and local business owners manage their funds. We have continued to evolve to...

3 Reasons to Use a Commercial Building Loan Calculator

If you’re looking to build or to purchase a commercial building, it’s a great idea to start with a commercial building loan calculator. It can give you a sense of how much to borrow for the property...

Where to Get Small Business Loan Rates

So you’ve decided to start a small business, and you have everything sorted out. Business plan…check, location, check. Small business loan rate quotes….not checked. Okay, so you have almost everything...

Small Business Loans in Wilmington, NC

Growing a business can be difficult but rewarding. Whether you are looking to build a new building for your business, move into an existing space, or purchase equipment, First Bank has the right small business loans in...

Essential Homeowner’s Insurance

Life has the ability to catch us off-guard with unanticipated and costly expenses, such as house damage from a fallen tree or basement pipes bursting during the winter season. That’s why homeowner’s insurance...