- Lower Your Interest Rate – One of the most popular reasons people choose to refinance is to lower their interest rate. This means it’s important to keep an eye on the market and make sure if you are refinancing you are doing so when the rates are lower than when you initially financed the loan.
- Consolidate Debt – If you have multiple high interest credit cards, refinancing can help to pay off a large amount of debt with a lower interest rate.
- Eliminate mortgage insurance – If you have an FHA loan, refinancing can help to lower your payments on private monthly insurance as that insurance is mandatory with those loans.
- Your Financial Situation Has Changed – Depending on when you opened your loan, your financial situation could have taken a positive turn. If you got a higher paying job, or improved your credit score, you could refinance and get a better interest rate.
- Change The Term of Loan – If you want to extend or shorten the term of the loan for any number of reasons, refinancing is a good option as long as you’ve paid back a decent amount when choosing to refinance.
- Change the Loan Type – Whether your loan was fixed or amortized when it was opened, refinancing can be the right choice if you’re looking to make a switch the type of loan.
- Fully Amortized or Interest Only – If you are paying on an interest only and are facing a recast, refinancing is a good route to go. On the other hand, if you’ve accumulated some equity and want to pay off some interest you can do that as well.
- Consolidate More Than One Mortgage – If you have two mortgages and want to get them into one payment, a refinance is a great option and can also save money if the interest rate is lowered.
- To Buy Someone Out – If there’s more than one person on the loan, and you want to take them off for whatever reason, refinancing can do that as well. This could be beneficial to the borrower especially if it lowers the interest rate because they have better finances.
- To Get Cash – A classic reason to refinance is to get cash out. Whether it be to add an extra room or buy a second home, a cash out refinance could be just the right move to make.
No matter the reason you are considering a refinance, who you choose to work with is going to affect the outcome of the refinance. When working with a local lender, the best thing they can offer is to make you feel like more than just a number, and that’s incredibly helpful when making big financial decisions.
They have a smaller operation so that means they will have a better idea of your distinct situation and work with you throughout the loan process one on one. Bigger banks may not want to spend the time answering questions or helping out with paperwork, but a smaller scale lender has the time and is willing to do so to gain you as a client.
Local lenders are great for many reasons but since they are working on a smaller scale, they may not be accessible 24/7 like a bigger bank. They also may not be as popular as a bigger bank so figuring out the best local lender to work with will depend on word of mouth or lots of research.
Contact Us Today!
Whether you are in Salina, Abilene or Ellsworth, we are here to help our with any questions or concerns you have when it comes to deciding your refinance options so don’t hesitate to contact us today!