Refinance application volume grew 17% to its highest level since April of this year. Purchase apps increased 4% on a seasonally adjusted basis; 2% on an unadjusted basis. It was 25% higher than the same week a year ago.
Refinancings as a share of all mortgage activity fell to 58.7% of total applications from 55.3%.
Are you thinking about refinancing your mortgage but don’t know if it is the right move for you?
There are many benefits associated with refinancing, including:
- Refinancing your mortgage can lower your monthly repayment
Refinancing may let you take advantage of the lower interest rates or sharper loan products. In the long run, the cost of a mortgage finance will be paid for by the monthly savings gained. Go to a Fixed Rate Mortgage from an Adjustable Rate Mortgage. For borrowers who are willing to risk an upward market adjustment, ARMs, or Adjustable Rate Mortgages can provide a lower monthly payment initially. They are also ideal for those who do not plan to own their home for more than a few years.
- You can pay your mortgage off faster
You may find yourself in a situation where you are making significantly more income than you did when you bought your home. Paying more on your mortgage each month is not always allowed according to the loan terms, so refinancing could be the ideal option for you. Choose a lower term to pay off your mortgage sooner.
- Refinancing lets you unlock the equity in your home
A major benefit of refinancing is that it allows you to access the equity in your home. You can get a line of credit based on the value of your home and the amount that you’ve already paid on your mortgage. This is a great way to fund home renovations, pay for university costs or make an essential big-ticket purchase. The interest rate is equal to your mortgage rate, so borrowing from the equity in your home tends to be the most cost-effective financing option available to homeowners.
- Consolidate your debts
Refinancing can help you to consolidate debts such as a personal loan, car loan or credit card onto your mortgage, thereby making it easier to manage your finances.
- Cash out a portion of the home’s equity.Generally, most homes will increase in value, and are therefore a great resource for extra income. Increased value gives the opportunity to put some of that cash to good use, whether it goes towards purchasing vacation property, buying a new car, paying your child’s tuition, home improvements, paying off credit cards, or simply taking a much needed vacation. Cash-out mortgage refinance transactions are easy, they may also be tax deductible.
Our team of mortgage professionals work hard to deliver our borrowers the best refinance experience by teaming up with the best lenders on the West and East Coast. We work side by side with our lenders to streamline your loan process.