 |
Four Reasons to Refinance Your Adjustable Rate MortgageHow do you know whether you should refinance out of your adjustable rate mortgage (ARM)? Before you decide, it should be clear what your purpose for refinancing is so that you can be sure your mortgage is still meeting your financial needs.There are several reasons people need to refinance their adjustable rate mortgage: 1. Lowering your interest rate and monthly payment 2. Consolidating to eliminate high-interest debt 3. Switching from an adjustable to a fixed interest rate 4. Getting cash out of your home equity 1. Lowering Your Rate and Payment Many people refinance their ARM to lower their interest rate. It may be that you got your ARM at a higher rate than what is currently available. If you refinanced to a lower interest rate, you would subsequently be lowering your monthly mortgage payment and possibly saving yourself some money. 2. Consolidating Debt Consolidating high-interest credit card debt is another good reason to refinance your ARM. If you have a lot of credit card debt that you want to get rid of, it's a smart idea to use your mortgage to do it-the interest on your credit cards is most likely higher than the interest rate you could get on a mortgage. Plus, mortgage interest is tax-deductible* whereas credit card interest is not. That can be a great advantage and could save you more money (more) click here for complete article Do you have questions on the selling of your home, condo or building lot? Visit 888SOLDin9 to talk with our Jacksonville FL 888soldin9 partner about your personal financial situation. Our Jacksonville FL partner, Jim Tallent buys, sells, renovates and rents homes and properties in Jacksonville FL, Duval County FL and Northeast Florida. |