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.

 

 

Right now, our historically low interest rates probably constitute the prime inducement to refinancing. 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.

 

Refinancing mortgages 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.