Are you thinking about refinancing your home? Here is some advice for an established CPA. It’s tough to meet your financial goals with traditional loan programs such as 30 or 15-year fixed-rate mortgages, 0-down options, lower costs, and adjustable rates. If you reduce your mortgage interest a little, you will end up saving a lot of money over the life of your loan. Here are some of the top reasons to refinance.
1. Reduce Your Monthly Payment
Are you planning to live in your house for a few years? Well, it makes a lot of sense to decrease your interest rate and overall mortgage payment by paying a point or two. Eventually, you will pay for the entire mortgage finance with the monthly savings.
If you are planning to move out in the near future, you may not live in your home long enough to recover the entire refinancing costs. You need to calculate the breakeven point before refinancing and decide on the best way forward.
2. Switch From An Adjustable Rate To A Fixed Rate
With an adjustable mortgage rate, you will enjoy lower initial monthly payments if you are willing to risk upward market adjustments. It’s an …