Trying to find the best refinance rates in Phoenix, AZ? A lot of homeowners are struggling these days, but what you may not be aware of is that property values across the Valley have increased.
This coupled with the fact that there are many programs available to help those in need means that it has become easier to refinance your home.
What Are the Benefits of Refinancing?
- You can reduce the interest rate you are paying. This will free up money in your monthly budget, and will also reduce the total cost of your home over time.
- Pay your mortgage off sooner. Not only does refinancing give you a chance to adjust your interest rate downward, but you can also use it to change the duration of your loan. Maybe you originally got a 30-year mortgage, but could afford to pay it off in 15. You can refinance to a 15-year mortgage and pay off your entire home more quickly. This is another way that you can save money over the long term.
- Has an adjustable rate mortgage, but wish you had a fixed rate loan—or vice versa? You can use a mortgage refinance in Phoenix, AZ to convert your home loan from one form to the other.
Is a Refinance Right for You?
While refinancing a home does have a lot of benefits, it has some costs and drawbacks too. There are fees involved, and in some cases, you could be subject to prepayment penalties. Closing costs with refinanced loans are often higher as well.
That means that you will have to do the math and calculate whether a refinance will ultimately save you money or not. It all depends on the specifics of the cash flow involved as well as your plans. If you think you might be moving in the next few years, a refinance may not actually be the best option. But if you are making Phoenix your permanent home, it could be a very smart move that will pay off over time.
Either way, B Home can help you look over your financial situation and advise you as to your options. We can also check whether you qualify for any government-backed refinance programs such as cash-out refinancing and interest rate reduction refinance loans (IRRRL) for VA loans. These programs can save you a lot of money.