There are several reasons to refinance your home:

To lower the interest rate on your home loan, reducing your monthly payments.

When you purchased your home, interest rates may have been higher than they are now. Factors like your credit and the amount of your down payment may have affected your rate. It is important to remember that interest rates fluctuate and your financial status can change making it financially savvy to refinance.

To reduce the term or length of your loan.

Another advantage of refinancing is decreasing the term of your mortgage. For example, if you originally had a 30-year mortgage, you could refinance to a shorter term and save thousands of dollars of interest.  If the interest rate is lower now, and you maintain the same monthly payment, you will build up equity in your home more quickly because more of your payment will be going towards principal.

Combining a first and second mortgage.

It is possible to combine a first and second mortgage, which will result in one payment and may significantly lower your current monthly payment.

Eliminating mortgage insurance.

If you made less than a 20% down payment when you purchased your home, you probably have private mortgage insurance included in your monthly payment. If your house has appreciated since then or you have paid down the loan balance, your equity may now be more than 20%. By refinancing, you might be able to eliminate the monthly mortgage insurance premium. Call 402.483.0000 for more details.

Switching from an ARM to a Fixed-Rate mortgage.

When interest rates are high, adjustable rate mortgages (ARMs) can be attractive. However, as interest rates increase, those adjustable rate house payments can increase as well. Most people appreciate the security of knowing that the monthly payment will remain the same, regardless of the current economy.

Combining debt or taking cash out of your home.

Homeowners can take advantage of the equity in their home for many purposes, including remodeling your home, paying off bills, or sending your children to college. Believe it or not, it is possible that your new mortgage payment could be lower than your existing payment.  Speak to one of our experts to determine if this option is best for you.

Asking yourself these easy questions may help you decide if refinancing is right for you:

  • How much can I lower my current monthly payment?
  • How long do I plan to stay in the house after I refinance?
  • How much will I pay in refinancing costs?
  • Will refinancing help my tax situation?

All you need to know is how much you currently owe on your house, the amount of your payment, and the approximate value of your house. With that information, your loan officer at U.S. Home Mortgage will be able to tell you if it is beneficial for you to refinance.