Better Homes and Gardens Rand Realty
Kenneth Rabasco, Better Homes and Gardens Rand RealtyPhone: (914) 844-2885
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5 Reasons it May Be a Good Idea to Refinance Your Mortgage

by Kenneth Rabasco 10/07/2018

Many Americans who purchased their home when they had lower credit, a shorter employment history, and less money stand to gain from refinancing their mortgages. However, most miss out on this opportunity or don’t realize it in time to save potentially thousands in interest payments.

According to recent data, 5.2 million Americans could save, on average, $215 per month if they refinanced their loan. But many homeowners are hesitant to refinance.

Whether it’s because of the inconvenience, the cost of refinancing, the worries about something going wrong, or uncertainty about whether they’ll actually save money if they go through the process, millions of homeowners are missing out.

So, in this article, we’re going to talk about some reasons it may be a good idea for you to refinance. If you’re one of the millions of Americans with a mortgage who are thinking about refinancing, this post is for you.

Riding the wave of the economy

Interest rates on home loans are historically low right now. As a result, homeowners can save by refinancing simply due to changing tides of the real estate market. Although mortgage rates have increased slightly over the past two years, they’re still on the low end, so this could be your last chance to save.

To consolidate your debt

Credit cards, auto loans, and other forms of debt can add up quickly. If you have a high-interest rate on your other debts, refinancing could be a good way to consolidate and save.

This can be achieved through a home equity loan or by refinancing with a cash-out option. This means you refinance your mortgage for more than you currently owe and take the remainder in cash to pay off your other debts with high-interest payments.

Typically, you need to have at least 20% equity (or have paid off 20% of your mortgage) to be eligible for this option.

Small percentages count for more now

It was once said that refinancing only made sense if you would receive a lower interest rate of at least 1-2%. However, with the prices of homes increasing over the years, sometimes even a small change, such as .75% is enough to save you substantial money on your repayment.

You’re able to repay early

One of the best ways to save on a home loan is by refinancing to a shorter term. Going from a 30-year loan to a 15-year loan can save you thousands. There are several calculators available for free online that will enable you to estimate how much you could save by refinancing to a 15-year mortgage.

You got a raise

One of the best times to refinance is when you can be certain that you can afford to pay off your loan sooner. As people progress in their career, it isn’t uncommon for them to refinance their loan so that they can spend more each month but save in the long run.

Since you have a higher income, and likely higher credit, you can also refinance a variable rate loan to lock in a lower fixed rate.


About the Author
Author

Kenneth Rabasco

Professional Associations & Designations Ken Rabasco aka Bosco is a member of the National Association of Realtors, the New York State Association of Realtors, Hudson Gateway Association of Realtors, and the Hudson Gateway Multiple Listing Service. As a lifelong Westchester resident, Bosco has a vast and extensive knowledge of the intricate details that comprise the communities of Southern Westchester, be it a recommendation for the best place to have dinner in one of the many River Town restaurants, or a market forecast for what the future will hold for the next place you'll call home. With a laser-attentiveness to detail and a never-faltering determination to get the job done, Bosco is supremely dedicated to his clients, and promises the very best in service to those who work with him, whether a first-time buyer or a long-time veteran of the market. Real Estate Expertise Licensed Real Estate Salesperson with Better Homes & Gardens – Rand Realty. Bosco specializes in listing and selling of co-ops, condos and houses in Southern Westchester covering Hartsdale, Ardsley, Scarsdale, Eastchester, Tuckahoe, White Plains, as well as the River Towns and those that are on the Long Island Sound. As a licensed real estate salesperson for Better Homes & Gardens – Rand Realty in White Plains, I have developed a dedication to client service and satisfaction that is unsurpassed. I am up-to-date on all the real estate market trends. With a professional, yet friendly approach, I help my clients feel comfortable when buying or selling their next home. Professional Associations & Designations Hudson Gateway Multiple Listing Service Subscriber, Hudson Gateway Association of Realtors Member, New York State Association of Realtors Member, National Association of Realtors Member Community Involvement Member of the Rotary Club of Hartsdale - Greenburgh Education Pace University - Bachelor of Business Administration Testimonials I will never refer to Bosco as my realtor, he’s a trusted friend. I met Bosco 6 months after loosing my husband of 11 years. I have two daughter’s Jennifer and Kylie. I didn’t need this big house in Eastchester. The upkeep was just too much for me. Bosco helped me sell my home and I purchased a townhouse. It was important for me to keep my girls in the Eastchester school district. I will be forever grateful to my new friend. He still calls from time to time to check in on us. Thanks Bosco. Karen Schwartz You will not be disappointed with all the work that Ken aka Bosco does for his clients. I was able to sell my house very quickly with his knowledge of what sells a house. From the front door throughout the house he noted what had to be removed and changed. He understands what people want to see in purchasing a house. With his help I was able to sell my house for $15,000 over the asking price. You won't go wrong with Bosco looking out for you. I can't thank him enough. I learned a lot from him, he knows the business. I will be forever grateful. Helen Izzo My girlfriend and I were looking to relocate to Westchester. We were first-time homebuyers and Bosco helped us with every step of the process and helped us find our dream home. He made sure to understand what we wanted. He made himself available when we had questions. He is reliable, very knowledgeable, and a true professional. Debora Flores I had the great pleasure of working with Bosco this past winter-spring on my first home purchase. Prior to Bosco I had a bad experience with another realtor who was unfortunately very unresponsive, lacked effort and ultimately not helpful. Thankfully my wishes were answered when I met Bosco because he was the complete opposite. Bosco doesn't waste time, he's extremely on top of everything. When I expressed interest in a listing, he'd book a visit within 1-2 days of me highlighting my home. He understands how aggressive the Westchester market is; good homes were snatched quickly. Moreover, I work in Manhattan, so I could only see places late at night, 7:30pm onward. He didn't mind visiting listing with me late a night. He worked around my schedule, not his. Being a first-time buyer, I had no experience with all the complexities of co-ops. It was great working with Bosco because he knows so much. He sits on a co-op board himself, so he has first-hand knowledge of what co-op communities are looking for. He successfully guided me on all the paperwork I need to paint myself in the best light to have my offer accepted and achieve board approval. Bosco's super passionate about home buying and I think that's the type of realtor you need to successfully land a great home. His combined passion and experience makes him a great realtor in my opinion. He's my realtor for life now, because I know he'll provide the best service. Ben DiChiara Bosco is everything you would ever want in a real estate agent. Smart, personable, energetic, friendly, tireless in his pursuit, of your goal. He is dependable, reliable, and at your beck and call. What more could you want. I would use him again anytime and refer him to anyone. If I could give him more than 5 stars I would. Cecilia Cohen-Downes