Nations Choice Mortgage helps home owners lower their monthly mortgage payment by refinancing an existing mortgage. By refinancing you can save from paying a higher interest rate and therefore decrease your monthly mortgage payment. Like any major financial decision there are factors to consider while evaluating your options. Let’s take a look at the benefits of refinancing your current mortgage.

Benefits:

Today’s interest rates are far lower than they have been in past years. In most situations, this means the interest rates Nations Choice Mortgage offer are lower than when you first financed your mortgage. Refinancing could provide a better rate of interest which reduces your monthly payment.

If you happen to have an Adjustable Rate Mortgage, a mortgage refinance is something you should strongly consider. Although rates are low now and your current ARM rate may be low, this will not always be the case. It’s best to lock in your low rate before market changes cause an increase in interest rates and your mortgage payments increase.

When refinancing you can even increase or decrease the loan payment period to extend the loan or pay it off sooner, if you desire.

Lower Interest Rate

For a mortgage of $100,000 amortized over 30 years, you would decrease your monthly premiums by $47.91 by simply refinancing from an interest rate of 6.25 percent to a rate of 5.5 percent. That is a savings of $17,253 in interest charges over the life of the loan. Lowering an interest rate is the number one reason people decide to refinance. In today’s market this has driven high demand to refinance because of the low interest rates that are available

Term Increase or Decrease

If you extend the term of a $100,000 mortgage at 6.25 percent interest from 15 years to 20 years, you could reduce your monthly payments by $126.49. On the other hand, if you have an existing mortgage term of 20 years and you refinance to a 15 year term, you could cut the time it would take to pay off your mortgage by 5 years. Both of these options are reasonable reasons to refinance. Depending on your future financial plans either of these options may be suitable for you.

Credit Rating and Home Equity

To qualify for the lowest mortgage rates, there are two important elements that are helpful to be aware of: Equity of your home and your credit score.

Borrowers with a credit score of 720 and higher will usually qualify for the lowest mortgage interest rates. The most common ways to enhance your credit score are paying bills at the right time and reducing consumer debt such as credit cards and personal loans, etc. It is always good to keep your credit card below 30% of your credit limit. Nations Choice Mortgage will be able to help you pull your credit and evaluate any potential issues. If you find that your credit report is not accurate, you can immediately take action and remediate any discrepancies.

The next important factor is the equity of your home.  Home equity is more difficult to determine without the assistance of someone with industry experience. This may include an appraiser, realtor, or mortgage lender. Nations Choice Mortgage’s network of qualified representatives is a good resource to help evaluate your home equity.

Nations Choice Mortgage – Lowest Interest Rates!

Contact Nations Choice Mortgage to get the  lowest interest rate on your mortgage refinance. Once you find out how much you could save, a professional mortgage representative will be able to help you compare services, rate of interest and give advice on which option is the most feasible for your situation.

Nations Choice Mortgage understands the importance of helping you understand and calculate the break-even points. A little time for the calculation can save a lot of money. Nations Choice Mortgage will be able to give you a fair idea on the estimated cost which will help make an effective financial plan.

 

Conclusion

When evaluating whether or not to refinance your existing mortgage it is important that you understand all of your options. It’s best to evaluate your situation and invest in the time to review the mortgage programs that are available to you. The time you spend reviewing your options and speaking with mortgage professionals will help you to refinance your mortgage at the lowest possible rate. If you have any questions about the benefits or risks of refinancing please contact Nations Choice Mortgage.

 

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