Pros and cons of refinancing your mortgage
When you refinance, it means you’re essentially taking out a brand new loan on your property, often for the remainder that you owe. Ideally, this new loan comes with better terms than your old one. This depends on a number factors, including how much equity you have in the house (i.e. how much of the loan you’ve already paid off) and what your credit score is when applying.
While refinancing sounds great on paper, it may not always put you in a better position. It’s best to weigh the pros and cons, taking your personal situation into account.
Depending on what kind of loan you are eligible for, refinancing might offer you one or more benefits, including:
1) A lower interest rate (APR) 2) A lower monthly payment 3) A shorter payoff term 4) The ability to cash out your equity for other uses.
For more information call Abdi Mohammadian at 925-785-7851.