Why You Should Refinance Your Home in 2021
Friday, December 25, 2020, 6:00 AM | Leave Comment
Are you thinking about refinancing your home? 2021 may be the perfect time to do so.
There are a number of reasons why this should be the case. They all come together to form the perfect storm of convenience and savings.
Here are some of the very best reasons why you should refinance your home in 2021.
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Mortgage Rates Are at an All-Time Low
Perhaps the most significant reason to refinance your home in 2021 is that now would be the best time to negotiate a historically low rate of mortgage payments. A qualified lender such as EnTrust Funding can help you get a fantastic deal on a home that you never would have thought was possible before now.
As it turns out, the average rate of a 30-year mortgage for a home in 2021 is sitting at the historically low figure of 2.72 percent. This is not such great news for lenders but it’s a boon for prospective home buyers. The time is unquestionably right for you to buy your home and lock in your mortgage for the next 30 years.
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Refinancing Will Cut Time Off Your Mortgage
One of the biggest reasons why you should consider making a move to refinance your mortgage is because you will ultimately cut years off of your commitment. You may have to pay more per month in the short term. But being able to pay it all off in less time means overall savings that may be quite considerable.
Being able to get your mortgage refinanced from 30 to 25, 20, or 15 years will put you in the driver’s seat. You’ll have a far more realizable window of opportunity to own your own home outright in a much shorter amount of time than you had planned on. This will also give you more options when the home is yours and you plan your next move.
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You’ll Be Able to Consolidate Your Debt
One of the best advantages that you may be able to have access to after refinancing your home in 2021 is one that all too few people think of. This is the ability to consolidate at least the greater part of your debt. Are you currently drowning in high-interest debt? Refinancing your home may do wonders to jump-start your cash flow.
This is because certain components of high-interest debt, such as personal loans and credit card debt, can be addressed through a refinancing deal. Since you will now be paying less on your home loan, at least in the long term, you will have much more money to devote to your other debts. You will also have more free cash left over.
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You Can Cut Down Your Mortgage Insurance Costs
Another great advantage that refinancing your home will let you have access to is the ability to cut down your private mortgage insurance costs. You may soon be in a prime position to renegotiate a new deal that will see you paying a significantly lower amount on this monthly charge. This alone could result in a much freer cash flow.
The idea here is a simple one. What you will want to do is refinance your loan so that you can safely dispense with your mandatory mortgage insurance. This will especially be the case if you have taken out a home loan from the FHA. If you have paid off 20 percent of your FHA, you can refinance your mortgage to get rid of this insurance.
There are a great many things that you will now be able to do with the money that you have saved. You can plan on a major renovation project to add resale value to your home. You may even plan to sell your home.
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It’s Time to Get Your Mortgage Fixed
If you are ready to refinance your mortgage, 2021 is by far the best time to do so. You will be able to save a great deal of money that you can invest in other projects. The average rate of savings for a homeowner on a refinanced mortgage is $309 per month. This is money that belongs in your bank account, not in your mortgage lenders.
