It would be fantastic to pay off your mortgage in a shorter period of time or even pay off your student loans for good, right? Since interest rates are low, this is the perfect time to refinance! However, these rates will not be low for long. If you want to refinance, it is best to do so NOW! Below you will find two solutions from Sierra Pacific Mortgage that could help you pay off your mortgage faster or get rid of debt.
For example, five years ago you bought your first home. You signed a 30-year mortgage and locked in at a rate of around 5%. Currently, interest rates are around 2 to 3 percent, but these rates will not stay this way forever. If you choose to refinance, you can turn a 25-year mortgage into a 20-year mortgage. Your payments would be at the same price, but with a lower interest rate. This option lets you gain extra years of financial freedom and you will finally be able to own your home!
The second option involves paying off debt. For example, you want to pay off your student loans. This is done by adding more years to your mortgage. By doing so you are able to cut back on debt and save hundreds of dollars. Let’s say you have a mortgage of 25 years and you decide to add on 5 more years. Now you have a 30-year mortgage. Refinancing while the rates are low, allows you to gain control of your debt and pay off those loans.
If you have any questions please contact Sierra Pacific Mortgage at 401-533-5392.