The real estate market is currently experiencing an uptick in the number of refinances taking place.
According to the Mortgage Bankers Association, more borrowers with home loans are refinancing. The Mortgage Bankers Association reports that the Refinance Index jumped 6 percent recently and refinance applications increased to 42 percent, up from 39 percent in the week of May 24.
For those who are thinking about taking advantage of this window of opportunity, know that a refinance can be a way to boost your monthly cash flow via restructuring the terms of your home loan. This could be a result of landing a lower interest rate, or extending your term to decrease what you are paying on a monthly basis.
You can utilize a refinance to do the following:
- Pay Down Debt
If you have been struggling to pay off credit cards or student loans, you can refinance to pay off these balances.
- Cash Out
Looking to make home improvements? Maybe wanting to travel? Pay for your child’s college tuition? If you do a cash-out refinance, you could open up a new source of cash to pay for such things.
- Boost Monthly Cash Flow
If you can lower your interest rate, then you will likely be paying less every month on your mortgage payment. As a result, you will have more funds available to you every month, allowing you to use that money on other things of importance.
- Lock in Your Payment
Worried about your mortgage payment rising in the future? If you refinance to a fixed-rate, then you could prevent that from happening.
Your financial goals are important to all of us at Element Mortgage, and that is why our mortgage consultants are ready to talk to you about how to develop a refinance package that helps you reach those goals. We will take the time to understand your particular situation and set you on a path to success. Contact us today!