Article provided by: Shannon Christenot
For anyone who has ever taken out a loan to buy a house, refinancing may be something they hope to do in the future. The interest rate that you were given at the time of the loan may have been good then, but as the market changes, your interest rate may end up being one of the highest around. When refinancing, you will have a lower monthly payment, as well as other benefits. For those looking to refinance in Los Angeles, California, Shannon Christenot is one of the top choices around. They can also help home buyers go over loan options and provide help to first-time homeowners.
What Are The Benefits of Refinancing?
Deciding to refinance your home loan comes with several benefits, from saving money to taking great strides in eliminating your debt.
Lower Monthly Payments
Mortgage rates fluctuate, and because of this, you might be paying more than the homeowners around you. The chance to find a lower monthly payment is the main reason that people choose to refinance their home loans. Even an interest rate that just ends up being one percent lower can make a big difference in the long run. However, you do have to pay a fee to refinance, so you should make sure it is worth putting out the money first.
Even though refinancing can give you a lower payment, you can also refinance your loan into a shorter term. While this will lead to a bigger monthly payment, the interest that you will be paying will go down. Not every homeowner is able to afford to do this, but those who do are able to reap the benefit of building up their equity. The sooner your house is paid off, the sooner you will one hundred percent own it, and that will add to the property equity you have.
Stable Loan Payments
Some homeowners have mortgages that are adjustable rates, which means their loan payment varies every month. Some payments may be lower than expected, while some could be higher. A mortgage can be refinanced to a fixed-rate one, which would mean you have the same amount to pay in every month. However, this kind of change does come with some risks. Your stable payment could end up being more than it was for some months. Deciding if this kind of refinancing is right for you would depend on your financial situation, both present, and future.
Pay Off Your Mortgage Quicker
Having so many things to pay every month can seem overwhelming, and it might seem easier not to refinance as a way to not have to actively think about your mortgage. However, refinancing can help you save money in the short term or the long run. You may end up with a lower payment every month, or have the ability to completely pay off your mortgage faster. Shannon Christenot can help clients decide if refinancing is right for them, and the kind of benefits it could offer.
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