Is it Time to Refinance?

When interest rates drop, refinancing may be the right choice for your financial situation. Consider the following advantages of refinancing to a lower interest rate

Start Saving Money

• Your loan’s monthly payment will decrease with a lower interest rate.
• With a lower payment, you can use the extra funds for retirement savings, paying other debts, saving money for college, or other purposes.
• You can roll your taxes and insurance into your loan.

Switch To A Different Loan Type.

If you have an adjustable-rate (ARM) or a balloon mortgage, reduced interest rates may make a fixed-rate mortgage more desirable, especially if you want the stability of an interest rate that does not change over time.

Switch To A Shorter Term Loan.

If you have a long time left on your mortgage, lower interest rates may make it possible to switch to a shorter-term mortgage.

• Pay off your loan early
• You can pay the principal balance down and build equity faster.
• You may pay less interest over the life of the loan with a shorter term loan.

If you have a jumbo loan you may be able to refinance to a “blended jumbo” and save money right away!