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. 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:
http://www.mortgagecalculator.org/helpful-advice/what-is-a-refinancing.php
http://www.investopedia.com/articles/pf/05/033005.asp

Trending Topics

SBA Com

If you have a business plan but are having trouble acquiring a bank loan, consider reaching out to the Small Business Association (SBA). The SBA is a government-affiliated organization that…

Find the Best Banks in Charlotte, N.C. | First Bank

The best banks in Charlotte, NC, provide you with convenient ATMs and many helpful banking options. Whether you live in or around the Queen City, you always have access to First…

Is Contributing to a Nondeductible IRA Right for You?

If you're considering making contributions to a nondeductible IRA, first learn about all of your options. This quick guide will explain the differences between deductible, nondeductible and Roth IRAs and how…

11 Easy Tips for Saving Money

Saving money is important if you want to be prepared for future financial surprises or hardships and establish peace of mind. But sometimes, finding extra funds to set aside is…

How Much Should I Have in Savings at Age 35?

How much money should you have in your savings account at the age of 35? It largely depends on when you started saving, your income and lifestyle, and whether you…

Budgeting Tips for Newlyweds

For many newlyweds, budgeting is a helpful activity to manage your finances. By following these easy guidelines, you and your significant other can work together to spend less, save more,…

Personal Finance Tips for Beginners

Reading personal finance tips is a great way to start thinking about your budget and saving for the future. If you're just beginning to think about your financial future and…

How Much Savings Should I Have At Age 30?

Do you know how much savings you should have at age 30? Unfortunately, there is no exact answer. Expert advice conflicts between encouraging 30-year-olds to save more and investing their already saved…

Bank Accounts for North Carolina Businesses

If you’re running a business, you want to make sure your finances are in good order. First Bank* offers North Carolina businesses the bank accounts and merchant services tools needed…

Bank Accounts for Businesses in South Carolina

Do you own a South Carolina business? Are you looking to start one? There are a number of reasons why South Carolina is a great state to do business. And…