Benefits of Refinancing Mortgages in Cambridge
There are many reasons why homeowners would want to
refinance their existing mortgage in Cambridge. They include getting a lower
interest rate and the opportunity to shorten the term of their mortgage in
order to pay it off sooner. A mortgage term can also be lengthened – to lessen
the monthly payments. It is possible to convert your mortgage from an
adjustable rate mortgage to a fixed rate one, or vice versa. Refinancing
may allow a homeowner to use the equity already existing in the home to achieve
some other financial objective, like paying off or consolidating debts, or
financing a large purchase.
Interest Rate Argument
Right now, our historically low interest rates
probably constitute the prime inducement
. One rule of thumb has that it is worth
your while to refinance if you can reduce your interest rate by 1%. That not
only saves you money, it also increases the rate in which you are actually
building up the equity in your home (as opposed to merely paying interest.) And
of course, any financial savings you make on payments can be invested in other
ways or used to reduce other debts. More savings.
in Cambridge can make a lot of sense by reducing your
mortgage payment; shortening the term of your loan, and helping you build the
equity in your home more quickly. A qualified lending company can crunch up the
numbers for you.