Coast Hills

Interested in lower payments or cutting interest? A mortgage refinance could be the answer

by Joshua D. Scroggin
April 04, 2016
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Does it make sense to refinance your mortgage?


At some point, most homeowners wonder about a mortgage refinance. Simply put, a refinance is when you take out a new mortgage to save money. For some, it can be a great way to save on the cost of ownership, or to use your home’s equity to cover other big life expenses. If you’re wondering if a refi is right for you, check out some of these money-saving benefits:  


Cut monthly payments


Perhaps the biggest perk of a refinance is lowering your interest rate. Lower rates reduce the total cost of the loan, and can cut monthly payments in the short-term. You may be eligible to refinance at a lower rate if interest rates have gone down since your original loan, or if your credit score has improved.


Pay off expenses


Another advantage of a mortgage refinance is the ability to access extra income. Use the additional money to pay off debt, contribute to your child’s college education, or fund a dream purchase. Cash-out refinances may even be tax-deductible.


Long-term savings


Want to pay off your home as fast as possible? Ask your lender about a shorter-term refinance (“term” refers to the number of months in the loan). When you reduce the term, you’ll pay more every month. So do the math and make sure you can afford the higher payments. Of course, the upside is that you’ll pay off the loan faster. And once your home is covered, you can put the money towards another important goal, like retirement.   


If you’re looking to cut costs or fund a big expense, a refi may be the right choice.


Interested? Check out CoastHills’ home loan refinanceCoastHills’ home loan refinance options today.

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Similar topics: Financial Fitness

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