What is Refinancing?
To the uninitiated, refinancing might seem complex, but the concept is actually quite simple: refinancing allows you to replace your current mortgage with a new one. Typically, the new home loan has much better terms, including a shorter interest term and a lower interest rate. Borrowers with a solid credit history are often able to exchange variable loans for fixed alternatives, which provide a greater sense of stability and ultimately reduce the amount of money spent on interest.
Why Refinance Your Utah Home Loan?
If you’re on the hunt for an easier and more affordable means of paying off your mortgage, refinancing could be the right approach. From lower interest rates to shorter loan terms, the benefits of refinancing are numerous. Detailed below are a few of the most compelling reasons to refinance your mortgage in Utah:
Lower Monthly Payments
Even a small reduction in interest rate can translate to significantly lower monthly payments. Not only will this provide immediate budget relief, it can also lead to thousands in savings over the life of your home loan.
Fixed Interest Rates
Planning for your financial future can be a real struggle if you’re burdened with an adjustable rate mortgage. If mortgage rates rise, you can expect your monthly payment to increase significantly over time. Fixed rates are preferable in that they allow for more accurate planning. Additionally, if the fixed rate is low enough, you’ll spend far less on interest than you would with an adjustable rate mortgage. With refinancing, you can secure a favorable fixed rate loan and take control of your monthly spending.
Shorter Loan Terms
The longer the loan, the more you can expect to pay in interest over time. If you shorten your loan by just a few years, you could save thousands — or even tens of thousands — of dollars. Combine a shorter loan term with a lower interest rate, and your savings could be considerable.
Ability to Pay Off Mortgage Sooner
Between shorter loan terms and a lower interest rate, refinancing could help you pay off your mortgage far sooner than would otherwise be possible. Once your home loan is completely paid off, you can shift your focus to other financial goals, such as saving for retirement or paying for college
Whether your chief goal is to reduce your interest or pay off your mortgage as soon as possible, you can achieve it with help from America West Financial Home Loans. Our extensive network of loan providers can help you find the best possible home loan refinance rate. Fill us in on your financial goals — we can help you find the perfect solution for your situation.
Apply for Refinancing Home Loan With America West Financial Home Loans Today
If you’re a Utah homeowner, the many financial benefits of home loan refinancing are within easy reach. America West Financial Home Loans allows you to easily apply online. Additionally, you can check your application’s current status and securely submit any necessary loan documents. If you have any questions, feel free to ask your personal mortgage specialist, who will patiently guide you through the entire process.