4 Benefits to Refinancing Your Mortgage

With interest rates dropping to their lowest ever, people are taking advantage of these historic lows despite the risks involved, there are definitely pros to refinancing your mortgage.

It’s no wonder banks are struggling to keep up with refinancing applications. So, here are 4 simple benefits to refinancing your mortgage:

#1: Economical Loans

The best reason to opt for these loans is because of the low rates that are on offer – the lowest rates for a while actually. Borrowing $100000 for a 30-year term will save you almost $20000 while the interest rate for a 15-year fixed rate loan has dropped below the 3% mark. Simply put, it’s ridiculously economical.

#2: Shorter Loan Period

Thanks to interest rates being so low, you can begin to pay off both the principal and interest in the first few years instead of just the latter with loans taken earlier. This can help you shorten the loan period, and also save you thousands of dollars of interest in the bargain.

#3: Plenty of Options Available

Having plenty of options open to you is probably the best benefit of all as you can take your time and shop around and separate the best deals from the worst. Sometimes the gap between the two can be a full percentage point – and you can imagine how that contributes to the bottom line.

#4: More Negotiating Power

With so many options available, this gives you more negotiating power. Not only can you get rid of fees amounting to almost $800 and termed as ‘garbage fees’ by experts but also lower the interest rate even if they believe that the interest rate has been locked.