-Today, mortgage rates are at all-time lows. Thus, it’s refinancing time for many borrowers once again. There are many benefits that homeowners can reap from refinancing their mortgages. Borrowers can lower their interest rates and save money in the long-term. Homeowners may reduce their monthly payments by doing this. Borrowers may no longer have to worry about balloon and fluctuating monthly payments if they switch to fixed-rate mortgages.
There may also be a possibility of combining the first mortgage with a home equity loan, and even getting some cash-out.
Refinancing is not right for everyone because the costs might outweigh the benefits, especially in the short-term. For example, you may save a considerable amount on your monthly payments by refinancing. However, it may take years for the refinance to pay off once you factor in closing costs.
If you have previously refinanced your home, you may still be recouping the costs for doing so. Depending on your credit score, it may make a refinance less advantageous. It’s also essential to consider how long you plan to stay in the home. If you plan to remain in the house for a relatively short period (under five years), then this may not be enough time to justify a refinance as the payoff can take a while to manifest itself.
Understandably, you want to take advantage of some of the lowest interest rates in recent history and refinance your Georgia mortgage. There are many pros and cons to doing so, though. A refinancing attorney in Augusta will want to know more about your long and short-term financial goals before advising you whether this is the best option in your situation.