There are a number of reasons to consider refinancing, including:
Current interest rates are lower than they have been in years - Refinancing now may save you thousands over the life of your mortgage.
Changing your loan type - You may be able to improve your loan terms resulting in long-term financial benefits.
Consolidating debt - Mortgage interest rates are significantly lower than most other loan types and most credit cards. By refinancing you can use your home's equity to pay off your higher rate debt. In addition, the interest paid to the mortgage of your primary residence is often eligible for tax deductions not available for interest payments on other types of loans.
Changing the length of your loan - Shorten your term and pay your mortgage off more quickly (greatest overall savings). Lower your monthly payment by lengthening your term, freeing up cash for other uses.
Putting your equity to work for you - Use it to pay for home improvement, college tuition, a new car or other large purchases.
Here's an example of how refinancing at today's rates could help you save thousands:
Payment
Amount before
Amount after
House
$550
$550.32
Car/truck
$350
$350
Visa
$250
$0
MasterCard
$125
$0
Discover
$85
$0
Dept. store
$55
$0
Gas card
$40
$0
Totals
$1455
$900.32
You would save $554.68 per month!
Our example is based on $75,000 first mortgage at 8% APR for 30 years. Interest rate subject to change. See your tax adviser for details.
At Midcontinent Financial Center, Inc. we offer a number of options for refinancing your home. When you contact us, we will evaluate your current financial situation and help you decide if refinancing is a good option for you.
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