Did you know that you can actually refinance your mortgage at any time? It is your right as a homeowner with a mortgage to be able to “replace” your mortgage financing anytime you’d like to. So now you know that you can refinance your mortgage but now you might be wondering…….When should I refinance my mortgage? Well, first you might want to ask yourself……Should I refinance my mortgage? If you have a mortgage that is a fixed-rate stuck at 30 years you may want to switch to a shorter one like a 15-year fixed-rate mortgage. Or another question you might want to ask yourself is “Should I refinance my mortgage now?”
Refinancing A FHA Loan And More
If you have a FHA loan, you might also be wondering if you should do an FHA Streamline refinance loan or the standard FHA loan refinance. Mortgage borrowers like FHA loans because they have lower down payment requirements and are less stringent with their standards for lending. An FHA loan, for those who don’t know about FHA mortgages, (let alone getting an FHA Streamline refinance loan) an FHA loan mortgage is a loan that is insured by the Federal Housing Administration and it protects the lender from loss if the borrower has to default on the loan. They are useful because it is typically a win-win situation for both borrower and lender.
Why Should I Refinance My Mortgage?
You should refinance your FHA mortgage or get any other type of mortgage refinanced if you are in any of the following situations:
- If you want to secure a lower interest rate, you should refinance. This is one of the best reasons you could refinance, so if you have noticed that your interest rate seems too high, go ahead and check out how much you can reduce your interest rate. By getting your interest rate lowered, you’ll save money and can actually increase the rate you build equity, as well as making the size of your monthly payments lower.
- When you find yourself wanting to shorten the term of your loan, refinance! There could be a difference of a few dollars to turn your 30 year term to a 15 year term and you’d pay less in the long run if you take into consideration the amount you would pay in interest. A few extra dollars upfront will save you so much in the future.
- If you want to switch your fixed-rate to an adjustable-rate, or the other way around, you can do that by refinancing. They both have their benefits and if switched at the right time, you can get some great benefits. Make sure to check out that you will be receiving benefits before you make the switch.
- Tapping equity and consolidating debt are also reasons to refinance. Of course, you should be careful not to go down the slippery path that will lead to a cycle of debt. You don’t want to constantly refinance to get out of debt just to have to do it all over again. However, if done correctly, it is a great opportunity and should be seen as such; just be careful.
The bottom line of it all is that even though you can refinance at any time, you want to wait for the most opportune time that will leave you with the most benefits of refinancing. Whenever you do choose to refinance, you are taking matters into your own hands to change them for the better. Refinancing can save you a whole lot of hassle that you would otherwise have to deal with for what could be years to come.