Oftentimes when people consider refinancing their home in Oak Shores or Heritage Ranch on Lake Nacimiento; their main reason is to lower their monthly costs. Since mortgage rates are currently low across the nation and in the Lake Nacimiento Real Estate market; many are contemplating the refinancing option.
Going through the process of refinancing your home should, however, be a very serious consideration. Take a look at my previous blog post regarding the 6 Tips to Determine if Now is a Good Time to Refinance Your Lake Nacimiento Home. You can also learn more about refinancing your home is on the Making Home Affordable government website as there is a lot to know about refinancing.
Refinancing your home can bring about some very positive changes! Below are four additional advantages of refinancing your home in Oak Shores or Heritage Ranch on Lake Nacimiento that you may not have considered!
1. Pay off your loan more quickly– If you find that you’re able to afford a little more on your home each month; decreasing the term of your Lake Nacimiento mortgage by going from a 30-year loan to a 15-year loan may be the best option for you! You’ll pay a lower interest rate and shorten your total interest costs. You’ll also build home equity more quickly, and pay off your loan sooner, even though your monthly payments go up.
2. Move from an adjustable rate to a fixed rate– Refinancing allows you to change over to a fixed rate mortgage. Many are seeing the initial benefit of a ARM is a little shaky long term. Having a fixed rate mortgage allows you to determine your budget more easily as there won’t be any surprises as there could be with an adjustable rate mortgage. Plus, when rates are this low; switching over to a fixed rate mortgage just makes sense. You don’t have to worry about your mortgage payment changing with the ebb and flow of the economy.
3. Take out cash– If you’re hoping to take on some projects around your Lake Nacimiento home; refinancing with a cash-out mortgage refinance can be very beneficial! You’ll have cash in hand to make those upgrades, which will hopefully bring about a greater return on investment. This option is great if you have a set goal for the cash and are not just looking for extra money to spend frivolously.
4. Consolidate two mortgages– Now is a great time to consolidate your home loan and any other home equity loan. By combining the two with the lower interest rates, you’ll find yourself with, not only a lower payment on your Lake Nacimiento home; you’ll only have to think about one monthly payment.
As a Lake Nacimiento Real Estate agent, I can act as a sounding board for this large decision or answer any questions you may have. My goal in working with buyers and sellers in Oak Shores or Heritage Ranch is to not just help them buy or sell a home, but to be a trusted resource they can turn to with anything pertaining to their home! I look forward to hearing from you!
Your Local Lake Nacimiento Real Estate Expert
Oak Shores Realty
Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.
Please let us know how we can help!