You’ve been hearing for a while that now is the perfect time to refinance your home. Yet many homeowners are reluctant to begin the refinance process because they don’t understand how much it can benefit them in the long run. Here at Brian & Cindy Real Estate in Sedona, our realtor encourages you to take advantage of these all-time low interest rates!
Here are five benefits of refinancing your home.
Lower interest rates
Let’s say you closed on a home last November. Depending on the lender you worked with, chances are your interest rate came in somewhere between 5.00% and 5.25%. Today, homeowners are locking in an interest rate of 4.00% or lower!
Though one percentage point may not seem like a significant difference at first glance, it’s definitely a game-changer in the real estate industry. This is the main reason homeowners in Sedona and throughout the U.S. are choosing to refinance. By going through the refinance process, you can not only lower your interest rate, but also lower your monthly mortgage payment.
In a domino effect, lower monthly payments give you much-needed financial flexibility. Ask someone who recently refinanced their house and they’ll probably tell you they’re saving an additional several hundred dollars every month. Think about what you could put that extra money toward — emergency funds, medical costs, home improvements, credit card debt, or even an upcoming vacation.
Perhaps you’re juggling a mortgage, student loans, and credit card debt. If you feel as though you aren’t making any progress paying down these balances, you may want to consider consolidation. In short, this process allows you to consolidate such expenses into a single loan with a lower, more competitive interest rate.
Eliminating mortgage insurance
Did you know that private mortgage insurance (PMI) may cost you up to 1% of your entire loan amount each year? That adds up in a hurry, especially if you plan to stay in your current home for years to come. Work with a lender to see how you can go about potentially eliminating your mortgage insurance for good.
Increased home value
Your home is your biggest investment. With that in mind, it’s worth your while to take on occasional home upgrade and remodeling projects. Refinancing can provide financial flexibility to complete these projects without having to skimp on materials, labor, etc.
Get in Touch With a Sedona Realtor
There’s no question that now is the perfect time to buy or refinance a home. But with the number of realtors in the West Valley, how do you know who to trust? At Brian & Cindy Real Estate, we’ve been serving Sedona residents for more than 40 years, so it’s safe to say we understand the ins and outs of the industry.
Trust us when we say that having the right realtor by your side makes all the difference. See what the team at Brian & Cindy Real Estate can do for you! Contact a Sedona realtor today!