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The Right Timing
Are you
treating your mortgage like an investment? What if interest
rates drop significantly? Could refinancing save you money
or possibly shorten the term of your loan. At American
United, we understand that for many homeowners your home is
probably your biggest investment. Therefore your decision to
refinance is important and requires careful consideration.
Are you ready to refinance? The answer usually depends on
your reason for doing so. Here are three main reasons:
1. Reduce
your interest rate.
Most
homeowners consider refinancing simply to lower their
interest rate. Lower interest rates mean lower payments.
Before refinancing however you should always weight the
upfront costs against the potential savings in your monthly
payment. Additionally you may want to consider the long-term
effects of adding additional years to your existing loan
term. For example, if you extend your new loan beyond the
number of payments you currently have remaining you could
end up paying more interest over the life of the loan. This
could offset the monthly payment savings. American United
has implemented an on-line calculator to help you determine when the
time is right for you to refinance.
2. Reduce
your mortgage term - pay off your loan faster.
When
interest rates drop, you may want to take advantage of
refinancing to a shorter term. By reducing the term of your
mortgage you could save thousands of dollars in interest
over the life of your loan. This could be done even though
your monthly payment stays the same, or increases. When you
reduce the term of your loan you are simply paying off your
debt sooner and building equity faster. But don't forget
about the lost opportunity of investing your savings
elsewhere. Many investment advisors feel that by keeping the
term of your mortgage the same, you would be better off
investing your monthly savings. Contact you American United
Refinance Specialist today at (800) 555-2035 to explore all
your possibilities.
3. "Cashing
Out" on your equity.
By
borrowing against the equity in your home you can take
advantage of a low cost way to get needed cash. And because
mortgage interest is usually tax deductible, pulling the
equity out of your home is typically less costly than high
rate consumer loans. Most homeowners use the equity in their
home for debt consolidation, home improvement or to finance
the down payment on an investment property. Contact American
United today at (800) 555-2035 to see if tapping into the
equity in your home is your best option. (Consult your
tax advisor for tax information.)
To
obtain today's refinance rates, use
Quick Quote, or contact us at (800) 555-2035. We look
forward to helping you make an informed decision.
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