Three Benefits of Refinancing Your Mortgage

​If you are still paying off a fixed mortgage and haven't considered refinancing then you are losing out. Lenders have been offering new and greatly decreased rates for refinanced mortgages at any term. If you are only a couple years into your mortgage you may not believe that you can benefit as well, but the truth is that almost anybody can benefit from refinancing a mortgage in today's market. There is a reason that people have been doing it in record numbers, and in case you're curious as to what advantages you can get, here are three benefits of refinancing your mortgage.

Interest Rates are at a 60 Year Low

The average national interest rate is currently sitting around 3.32 percent for a 15 year mortgage, compare this to seven years ago when the national average was 6.8 percent and it becomes very apparent why it is the perfect time to refinance your mortgage. No matter how much you have left to pay off, 3 1/2 percent is a fairly substantial discount on interest, one that may never be seen again. This is the lowest they have been in most home owner's lifetimes and the odds of seeing them this low again are very slim. You can either refinance your mortgage now or spend the next 15 or 30 years wishing you had.

Save Money in a Variety of Ways

Sticking with a fixed 30 year mortgage that you signed on for years ago is a great way to lose money. It may seem like a hassle to go through all the trouble of refinancing on a mortgage that you just signed on for, but you will save money by doing so. From lower interest rates that will save you monthly to shorter terms that will save you in the long run, there are plenty of ways you can save money on a refinanced mortgage. You will also have more fluid income each month because your monthly mortgage payment will be significantly lower than it is now, freeing up funds for those dream items you wished you had enough money for. To calculate how much you can save check out the refinance calculator at https://www.financeglobe.com/Calculators/should-i-refinance.php.

Own Your Home Sooner Than You Expected

If money is not an issue for you and you don't mind the current monthly interest payments you're making then you can still benefit from refinancing your mortgage. If you look at how much money you're paying on your mortgage and then compare it to how much you would be paying at a reduced interest rate, plus closing costs. You can opt for a shorter term when you refinance and you will still pay roughly the same amount per month. Except now you will own your home in a faster amount of time without paying more.

Nearly any homeowner with a rate higher than today's average can benefit by taking advantage of the low interest rates being offered and refinancing their mortgage. There is no way of knowing how long mortgages will be offered at these rates, the more people decide to refinance the better chance rates have of being increased. If you own a home and have a mortgage there is no reason why you shouldn't contact your broker and try to refinance it.