When rates drop significantly lower than what you’re paying now, it may be time to refinance your residential loan. Of course, the savings over time needs to be large enough to cover the costs of refinancing (loan origination fees, etc.). An Ark Mortgage Advisor can help you calculate your potential savings at today’s rates.
But there’s another great reason to refinance your residential property. Homes typically grow in value each year. And your equity — the portion of your home that you own outright — grows as you continue to pay off your mortgage. The difference between the original purchase price of your home and its current market value is untapped equity that you might be able to use for other purposes.
We call it a “cash-out re-fi” and it goes like this: You refinance your home (or investment property or vacation home) for more than you owe. You can use the extra cash for any number of things: home remodeling, starting a business, a college education. You may also get a better interest rate.
Talk to your Ark Mortgage Advisor for ideas.