Urbandale, April 13, 2022 (GLOBE NEWSWIRE) -- Urbandale, Iowa -
Louie Wickett - Mortgage Lender, with offices in Urbandale, Iowa, wants to emphasize to homeowners that home refinancing today can offer several benefits even with the current interest rates. Because rates are not exactly at their all-time lows, he advises homeowners and other property owners not to hold off too long since there is no assurance that the rates will decline in the near future. Furthermore, even if the rates do go down, waiting too long means lost opportunity on the substantial savings that refinancing can offer.
The key benefit of a home refinancing is, of course, a lower interest rate and reduced monthly payment for the home financing arrangement. This means more savings, allowing the homeowner to pay off a financing deal with a high interest, add to savings, or save more dollars to be used for retirement.
Some home financing deals have adjustable rates, which are typically low at the start but the interest rate gradually increases over time. Although this may be beneficial at the start because of the relatively lower monthly payments, it becomes more burdensome later on. A home refinancing can allow the homeowner to shift to a fixed interest rate.
A home refinancing can also have the home financing period reduced. For instance, with sufficiently low interest rates it may be possible for the homeowner to convert the 30-year home financing deal to a 20-year period with only a small increase in the monthly payments. The homeowner will not only have the advantage of fully owning the home earlier but also of having a significant reduction in the total amount of payments made for the home. Louis Wickett can offer advice on whether it is time to go for refinancing with the current rates. To know more about Louis, people can check out the latest article about him.
Meanwhile, insurance is usually required for a home financing arrangement, except for those obtained through the VA program, when the down payment made is less than 20 percent of the home’s value. A home refinancing deal can get rid of the insurance expense if certain conditions are met, such as a rise in the home value or when the remaining amount to be paid has sufficiently been reduced.
And finally, a home refinancing can provide funds for the homeowner to make some repairs or improvements to the home. Accessing the equity that has been built by the homeowner can provide money that can be used for various purposes, such as home improvements, home repairs, college tuition, hospital bills, legal expenses, and other huge expenses.