Reasons to Refinance

Published on November 21st, 2014

Still looking for a reason to refinance? Here’s One!

 

Our vLoan team works with a number of homeowners who are skeptical about refinancing. We help them decide if this option is best for them and walk them through the refinancing process. While many mortgage consultants will provide a list of reasons why refinancing is a great idea, we understand that this isn’t for everyone and take the approach of showing people the benefits a refinance may have on their unique, financial situation. If you’re one of the many homeowners who are debating if refinancing is right for your needs, contact a financial advisor today or visit our website and see what your options are by receiving a free rate quote. We've added to the list that many mortgage professionals provide and give more reasons why this option may be a great financial move to make before the year’s end.

 

Advantages

 

One area most homeowners don’t think of or realize there are potential savings is in the reduction or possible elimination of the monthly Private Mortgage Insurance (PMI). The monthly PMI payment is based on the loan-to-value (loan amount, compared to the home’s value). As property values increase and loan amounts decrease, the loan-to-value continues to lower, which could lead to lower or no PMI for the new loan. PMI rates are based on the following loan-to-values: 80.01-85%, 85.01-90%, and 90.01-95%, so every 5% reduction in the loan-to-value means a lower monthly PMI.

 

As you can see, with the combination of lower rates, reduced terms, a possible reduced or eliminated PMI, and potential tax advantages, the benefits of refinancing before year’s end could be numerous. These possible advantages should also help you further understand why many mortgage professionals are coming to you with an arsenal of reasons to refinance.

 

While refinancing can be a great option for some, we understand that this won’t work for every homeowner. If you are considering refinancing before the year ends, be sure to contact a member of our vLoan team and see which option is in your best financial interests. We are here to help you take advantage of the benefits and savings available through refinancing!

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