What is a Refinance?
When you refinance, you get a new loan to pay off your current loan.
Benefits of Refinancing
If you’re unsure whether you should refinance, consider these benefits:
- Lower your interest rate
Refinancing to receive a lower rate may save you thousands over the life of your loan. Contact your lender to compare your current mortgage rate to the rates they’re currently offering.
- Shorten your term
Transitioning your 30-year loan into a 15-year loan may result in a more favorable interest rate. It will also help you pay less in interest over the life of your loan.
- Switch from an adjustable to a fixed rate mortgage
Switching your mortgage from an adjustable rate mortgage to a fixed-rate mortgage can help you lock in a low mortgage rate before potential future rate hikes.
- Turn your home’s equity into cash
Many homeowners choose to access the equity in their homes to receive cash for home improvements, to pay for college tuition, to buy a new car, or any other high cost purchases.
Contact a Service First Loan Officer near you to discuss whether refinancing might be right for you.