To refinance or not to refinance… these days, that is the question. The fact is, refinancing offers many financial benefits to your borrowers. We aggregated five key benefits to share with your borrowers on why refinancing their mortgage could turn out to be the best thing for them, their family and their bank account.
1. Shorten the term of your loan
With record-low interest rates, payments on a 15-year mortgage may be comparable to the 30-year loan payment you’ve been paying.
2. Lock in a lower rate
Beyond being easier to plan for and budget, locking into a fixed rate can protect you from rising interest rates in the coming years.
3. Lower your interest rate
In general, if you can reduce your interest rate by at least 1%, refinancing your home could literally save tens of thousands of dollars over time.
4. Cash-out home equity
From paying off credit card debt to educational costs, refinancing can be a great way to convert home equity into money you can utilize now.
5. Save on monthly payments
Reducing your payment could free up hundreds of dollars per month that can be saved for a rainy day or invested back into your home.