5 Reasons to Get a Refinance Loan Now
Getting a refinance loan is a great way to take advantage of today’s low interest rates and save money in the long run. Refinancing your loan can also help you manage your finances, lower your monthly payments, or consolidate other debts into one monthly payment. Here are five reasons you should consider a refinance loan now.
1. Lower Interest Rates
If you’ve been considering refinancing, now is the time! Mortgage interest rates are currently at near-historic lows due to the impacts of the coronavirus. This means refinancing now can get you an even lower interest rate than what you’re currently paying, potentially saving you hundreds, or even thousands in the long run.
2. Cash-Out Refinance
A cash-out refinance loan can provide you with a lump sum of cash in exchange for the equity you’ve built up in your home. The loan amount can be used for a variety of reasons, such as covering medical bills, consolidating debt, or home improvements.
3. Lower Monthly Payments
Refinancing may also lower your monthly payments and free up additional funds to use for other purposes. Even if you don’t get a lower interest rate, you may still be able to reduce your monthly payments by extending the length of your loan.
4. Credit Improvement
If you’re applying for a refinance loan, it can actually help improve your credit. This is because the new loan terms mean less total debt owed and a lower monthly payment. This makes lenders view you as a less risky borrower with an improved credit score.
5. Renovations
Finally, refinancing can be a great way to cover the costs of home renovations and other projects. By taking out a home equity loan on the additional equity in your home from refinancing, you can have the funds to take on any renovations or projects you need done.
If you’re considering refinancing your home loan, now is a great time to take advantage of low interest rates and make sure you get the best terms possible. From lower interest rates and monthly payments to improved credit scores and cash for home improvements, there are plenty of great reasons to get a refinance loan now.
