Save Money By Refinancing Your Mortgage
If you're struggling with your mortgage payments or simply hoping to lower them, refinancing your mortgage could be exactly what you need to save some extra money each month.
People refinance their mortgages for a variety of reasons, including getting rid of private mortgage insurance (PMI), lowering their interest rate, shortening their loan term, lowering their mortgage payment, and more. If your credit score has improved since you first purchased your home or if current interest rates are lower, now could be a great time to refinance your mortgage.
To see if a mortgage refinance could save you money, use our Mortgage Refinance Calculator as a starting point.
Next, comparison shop different lenders here on LendingTree to make sure you get the best interest rate possible on your new loan. Because we all know that when banks compete for your business, you win.
Trade home equity for cash
If you’re 20 years into a 30 year loan, it might seem like a great idea to do a cash-out refinance
. After all, the rates are usually lower. But you also need to consider that a loan of that maturity is likely paying a lot towards the principal. Make sure you do what’s best for you in the long term.
Convert an ARM to a fixed-rate mortgage
Lower your interest rate
If you’re not significantly paying down the principal, you could be throwing money away. By lowering your interest rate, you could conceivably pay off your mortgage faster
while you’re chipping away at that principal, too.
Lower your monthly payment
Lowering your monthly payments can loosen the belt on your household budget and allow you to focus on some other changes you might want to look into – like switching to a fixed-rate mortgage. Your lender will be able to help you address all the variables.
No cost, no money down or closing cost
If you can find a no-cost mortgage that's better than your current loan, you should ALWAYS refinance. Otherwise, consider the benefits of refinancing to make sure it's worth it for you.