3 Myths About Refinancing a Mortgage

 

Refinancing your mortgage can be a very helpful thing to do when you are unsatisfied with your current mortgage rate. Maybe you absolutely had to move to an area and the mortgage rate you go was the best one you could find on such short notice. Perhaps you signed what was a good mortgage rate at the time when you bought a home and since then, the rates have dropped a percentage point or two and you want to capitalize on that.

 

Being a very popular financial option and decision for people around the country, there are myths that float around regarding the mortgage refinance process. As a financial services company, we have heard just about every myth there is about refinancing. We have chosen three of the most popular myths about refinancing and decided to give you the facts.

 

1. The economy is not good enough to refinance. The economy is not in its best shape and has not been for the last six years. However, it is better shape than the worst points of the last six years. Now, due to the economy and the real estate market, the financial side of the American confidence has been a bit shaken up. We know that with all the foreclosures that happened, it really made people weary of dealing with mortgages they did not already have. The beauty of the time is that due to rates being lower due to less demand, those how have the confidence to get going on the process can get some serious savings.
2. The process is way too hard. Refinancing can indeed be a process that is overwhelming for some. However, once you have already gone through the process to get your purchase mortgage, you are familiar with the process and know what to expect. Do not let that scare you! Even if you hated the process the first time, wouldn't it be worth saving money? It will give you peace of mind knowing that you have a great rate and you are able to put those savings in the bank or invest them. You can refinance to extend your loan and reduce payments, lower your rate and save, or shorten your term and be mortgage-free faster.
3. Investing is a greater way to earn money. Investing your money can be a great way to earn money but it is not always the best. You can save money by improving your credit score and refinancing to boost your financial muscle. Growing your assets and neglecting other methods is like only working your biceps and forgetting about your core. You might earn a bit with investing but earning that $5000 is a lot harder to do than saving $5000 on a refinance.

 

When you have the ability to save money, it is well worth the trouble (remember, less trouble than investing). If you are looking to go with a mortgage refinance, then shop TrueFi!