Are you thinking about refinancing your home? Maybe you’re wondering what circumstances make refinancing a good idea. Well, we’re looking at three compelling reasons to refinance your home.
Your credit has gotten much better – You’ve been paying your bills on time, your debt ratio has gone down, and your payment history is now clean as a whistle. Congratulations!
When your credit score goes up, it’s time to see if your interest rate can go down. Even a quarter percentage point shaved off an interest rate can measurably decrease your payment and save you money each month.
You have a once-in-a-lifetime expense: Obviously you can refinance your home more than once. A once-in-a-lifetime expense refers to a time-sensitive expense such as college tuition or medical bills. Oftentimes, a refinance can be the most affordable way to pay these debts as a new home loan is almost guaranteed to have a lower interest rate.
You want to increase the value of your home – There are several home renovation projects that can increase the value of your home and provide a real return-on-investment should you decide to sell. A second (or third) bathroom, a finished basement, or a larger kitchen are all great examples of improvements that will increase the value of your home.
If you are refinancing to increase your home’s value, read our tips about how to make it a success.
If you are in Omaha or the surrounding area, you can always call us here at The Denman Team to find out more about refinancing.