Interest Rates are Historically Low

Interest rates fluctuate periodically. The 30-year mortgage rate spiked as high as 18.6% in 1981 and fell as low as 3.3% in 2012. Today’s rate is now near historic lows, and in August 2020, actually fell to 3.19%.

Depending on when you purchased your home, there’s a good chance that the current interest rates are lower than your existing mortgage.

That means that now may be the perfect time to refinance your mortgage, before rates rise again and potentially eliminate one of the biggest benefits for refinancing a mortgage – lower interest rates and lower overall payments on your mortgage.

The sooner you begin the refinance process, the faster you can lock in lower interest rates. Waiting too long could leave you without a really good reason for considering a refi loan.

You Want to Reduce Your Loan Term

Circumstances change. Perhaps you have a better job. Or maybe you’ve inherited money from a relative – or even taken home one of the lesser lottery prizes and hope to reduce the length of time (and overall money) you’ll pay for your home. Refinancing from a 30-year mortgage to a 15-year mortgage can save you huge amounts of money on your home. We’re talking tens of thousands of dollars, if not more.

On the flip side of the equation, some people need to extend the terms of their mortgages to create a little budgetary wiggle room each month. In this case, you might consider going from a 15-year mortgage to a 30-year mortgage. It will cost considerably more in the long run. However, it may be the difference that allows you to keep your home when things get tight.

Switching from an Adjustable Rate Mortgage to a Fixed Rate Mortgage

This is definitely a worthwhile consideration for people who have adjustable rate mortgages facing reassessment soon. With interest rates as low as they are, if you’re an adjustable rate mortgage holder, you could end any speculation or worry you may have about fluctuating rates by switching to a fixed rate.

You may pay a little more, initially, as an interest rate, but may gain incredible peace of mind – the kind of peace of mind that comes from knowing your interest rate can’t suddenly rise sufficiently to price you out of your home.

Home mortgage refinance loans can, in the right circumstances, be the perfect solution for many mortgage woes. The more you know about your options, the better informed decisions you can make about your personal need for a refinance loan and the best type of loan to meet your needs without creating pain in other areas of home ownership.

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Do you ever wish you could have a little extra cash? Don’t we all! Maybe there’s a vacation you would like to take or some things you need to buy for your home. Perhaps you have some high-interest debt that you need to get rid of. If so, you’re not alone!

All of us have been there at one time or another. Fortunately, there are more options available these days than ever before. And if you are a veteran, you are in an even better position. You may find that VA loans give you the cash you need without forcing you to hand over your first-born child.

What is the IRRRL program?

IRRRL stands for Interest Rate Reduction Refinancing Loan. It’s a special kind of loan available just to veterans.The best part is that the IRRRL program allows you to refinance your existing loans at a lower interest rate.

Think of it as Uncle Sam’s way of thanking you for your service. For those who have spent time overseas, this program makes it much easier to start a home back in the U.S.

Reasons to Seek a Refi

A major advantage of these loans is that you may be able to get one with a “no money out of pocket” condition. How exactly is that possible? This is usually done by taking the costs associated with a new loan and rolling them into the total amount of the loan. In other cases, the lender may choose to absorb the costs if the interest rate is high enough to cover them.

The result is extra savings that you could use to improve your overall financial situation. The number one reason to take advantage of refinancing is to tackle credit card debts. Remember, those pieces of plastic carry interest rates well into the double digits, which is typically much higher than your refinanced mortgage rate.

The number one reason to take advantage of refinancing is to tackle credit card debts.

Another great reason to seek a refi is to help save for retirement. While veterans do get some pretty good retirement benefits, it never hurts to save a little extra. If you’re behind on your savings, try putting the money you saved from refinancing into a 401(k) plan. This will make your savings work double time.

Consider Refinancing

In short, the IRRRL program may mean serious advantages for vets. Whether you are looking to take a well-deserved vacation, pay off some high-interest debt, or just have a little extra cash on hand, a VA loan might be just what you need. If you haven’t already, look into your options today. You’ll be glad you did!

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