The Benefits Of Refinance Mortgage In 2016
The Many Benefits Of Refinance Mortgage In 2016
There are many benefits of refinance mortgage in 2016. Although the Federal Reserve Board has recently raised interest rates by 0.25% basis points, mortgage rates are still at historical lows and nobody has a crystal ball, but mortgage interest rates cannot remain this low forever. The Feds are closely keeping an eye at the economic data and unemployment numbers and any signs of the economy getting better will no doubt spike up interest rates again. If you are a homeowners and have not refinanced your high interest mortgage loan yet, you should consider the benefits of refinance mortgage in 2016. Whether you are considering a rate and term refinance to lower your monthly payments, refinancing to take out non-occupant co-borrowers, Refinancing FHA Loan To Conventional Loan To Eliminate MIP , or do a cash-out refinance mortgage to pay off debts, there are many benefits of refinance mortgage in 2016 while mortgage interest rates are still very low. We will be discussing the major benefits of refinance mortgage in 2016 and see if refinancing will be a great benefit for you.
Benefits Of Refinance Mortgage In 2016: Are Mortgage Rates Going Up?
The recent announcement by the Feds that they rose interest rates by 0.25% was long expected. The Federal Reserve Board has been delaying raising interest rates for quite some time. The intention of the Feds is to keep on increasing interest rates and the Feds will be carefully watching the economy. Any spark in the economic numbers and signs of economic growth, you can bet that the Federal Reserve Board will not hesitate in increasing interest rates in the months to come. Mortgage rates will not remain this low forever. It is not if mortgage rates will go up, it is when mortgage rates will go up. The Federal Reserve Board has plans in raising short term interest rates in the very near future where if short term interest rates go up, mortgage rates will definitely go up as well. With keeping this in mind, 2016 makes it a great time to refinance your mortgage loan into a lower mortgage rate.
15 Year Fixed Mortgage Versus 30 Year Fixed Mortgage
There are many benefits in refinancing your 30 year fixed rate mortgage loan to a 15 year fixed rate mortgage loan. 30 years is a very long time to have a payment agreement to pay anything off. You should consult with your mortgage loan originator and see and compare the benefits of a 15 year fixed rate mortgage versus a 30 year fixed rate mortgage. Keep in mind that 15 year fixed rate mortgage loans have much lower mortgage interest rates versus 30 year fixed mortgage rates. The much lower mortgage interest rates you get quoted with may benefit you getting a 15 year fixed rate mortgage loan; You may get a similar monthly payment or slightly higher monthly payment and be able to afford the 15 year fixed rate mortgage and shave off 15 years off the life of the mortgage loan.
Benefits Of Refinance Mortgage In 2016: Consolidate Your Bills
If you have equity in your home and have many outstanding debts, homeowners should consider doing a cash-out refinance mortgage loan where you can take the cash from your refinance mortgage and pay off all of your high interest credit cards and/or other high interest bills. Mortgage interest rates are much lower than credit card interest, car loan interest, and other interest rates on your other debt. Average mortgage rates are in the 4.0% rate where average credit cards interest rates are north of 14% and some even over 20% interest rate.
Besides debt consolidation, you may need a cash-out refinance mortgage to buy a second home, pay for college tuition, take care of your elderly parents, renovating your home, or for investment purposes. Average college tuition for undergraduates are over $30,000 per year and many homeowners help their children with their college expenses with the equity they have in their homes with a cash-out refinance mortgage.