<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1955936548054264&amp;ev=PageView&amp;noscript=1">
 

7 Smart Reasons You Should Refinance Your Home Loan

< Back to Articles | Time to Read: 5 minutes

Everywhere you turn right now it seems there are newsfeeds, social media posts, and articles all about refinancing. And everyone is asking the same thing ... “Should I refinance my home now?” That’s a smart question! Let’s make this easy and break it down into 7 ways a refinance could work to your advantage.

Refinance Refresher

When you’re refinancing your mortgage, you’re taking your existing mortgage, paying it off and then replacing it with a new home loan that works better for you.

Popular Reasons to Refinance

Some common refinancing goals we often hear are: “I want to lower my monthly payment,” and “I don’t want to pay mortgage insurance anymore.” But there are other cases of when you may want to see if refinancing is best for you. Here's the top 7 reasons to refinance your home:

  1. You want a lower monthly payment: If you’re trying to relieve some pressure from your monthly mortgage payment, you can look in to lowering your payment by refinancing to a lower interest rate and/or extending your loan term to help make ends meet.
  2. You have a conventional loan and are currently paying PMI but want to get rid of it: Private Mortgage Insurance (PMI) can add hundreds of dollars to your monthly mortgage payment. One of the ways you can remove PMI from your mortgage payment is to refinance it. After you get a feel for the value of your current property from an appraisal, if the value of your home is 80% or less of the home’s current value, PMI can typically be dropped.
  3. You have an adjustable rate mortgage (ARM): There are several reasons as to why refinancing from an adjustable rate to a fixed-rate mortgage is a good idea. For starters, your budget is at risk if you’re currently in an adjustable rate mortgage. A fixed-rate home loan provides more stability, allowing you to plan for your future with more certainty. Another good reason to get out of an ARM is to reduce your interest rate risk while rates remain at historic lows—this will save you money long-term.
  4. You have an FHA loan and pay mortgage insurance: Switching from an FHA to a conventional loan gives you the opportunity to remove mortgage insurance (MIP). With a conventional loan, you can eventually drop the mortgage insurance once you’ve paid down the loan to a certain amount (usually about 78% of the value of the home loan). If you still need mortgage insurance when refinancing your mortgage, it’s typically cheaper with a conventional loan.
  5. Your current interest rate is higher than what’s available today: If your interest rate is higher than what's currently available, it's time to refinance to save some money. 
     We can even keep an eye on interest rates for you and notify you as soon as it makes sense to refinance your mortgage and save you money through our Rate Watch program.
    Sign Me Up for Rate Watch!
  6. You want to change your loan term: This is a great way to get out of debt earlier if you’re refinancing from a 30-year to a 20-year, or even 15-year mortgage. Shortening your loan term may raise your monthly mortgage payment, but it will pay off long-term with less going toward interest on the loan. For example, a 15-year refinance loan is a good option if you want to get a lower rate to pay off your mortgage quicker and become debt-free. When interest rates are low, you could potentially save tens of thousands of dollars over the course of the loan by refinancing to that lower rate.
  7. You want to stay in your home but need to make some updates: If you’re looking to make some upgrades to your current home, it’s good to look at all your options. With this option, your refinanced loan will be for a greater amount than your existing home loan, and you receive the difference between the two.

“Our entire refinance process so easy. The Churchill team worked with us every step of the way to answer any questions that we had and to keep us updated on the status of our loan. I would definitely recommend them!

- Carol

 

For more information about refinancing your current mortgage, schedule a quick 10-minute call with one of our expert Home Loan Specialists to help you figure out what’s best for you and identify opportunities to save time and money!

—Download Your Refinancing Starter Kit Today!—

Are you buying a home or refinancing?

Where are you planning to buy a home?

Please Select a State

What is your full name?

Please Enter a Name
Please Enter a Last Name

What is your email address?

Please Enter a Valid Email Address
  We won't share your information.

Next, we need to verify a phone number.

Enter a Valid Phone Number
Please Select a Message Type

Enter your phone number and we'll text you a 6-digit security code to verify it's you. Standard texting and data rates may apply. For more information, read our Privacy Policy.

Enter the 6-digit code sent to your device.

 Code sent to +1234567890

Finally, how did you hear about us?

Please Select an Option

By submitting this form, I/we agree to your Privacy Policy Terms of Use and authorize Churchill Mortgage Corporation and/or their Preferred Provider for our area and/or The Churchill Agency to receive the above information to assist in obtaining a home loan.

I/we also authorize Churchill Mortgage Corporation, The Churchill Agency and/or their Preferred Provider for our area to contact us regarding but not limited to mortgage and insurance services and products via telephone, mobile phone (including through automated dialing), and/or email, even if telephone numbers or email I/we provide are on any Do Not Call/Contact Registry, such as corporate, state, or the National Do Not Call Registry. The submission of this form does not constitute in any way a formal loan application or a commitment for a loan. By communicating with us by phone, you consent to calls being recorded and monitored. By participating, you consent to receive text messages sent by an automatic telephone dialing system. Consent to these terms is not a condition of purchase.

Your answer will NOT negatively affect your mortgage application. Your answer does not mean the Lender or Other Loan Participants agree to communicate or provide documents to you in your preferred language. However, it may let them assist you or direct you to persons who can assist you. Language assistance and resources may be available through housing counseling agencies approved by the U.S. Department of Housing and Urban Development. To find a housing counseling agency, contact one of the following Federal government agencies. U.S. Department of Housing and Urban Development (HUD) at (800)569-4287 or www.hud.gov/counseling

Es probable que su transacción de préstamo hipotecario suceda en inglés. Por medio de esta pregunta, solicitamos información para determinar si existen comunicaciones disponibles a su servicio, en su idioma preferido. Sírvase tener en cuenta: posiblemente NO hay comunicaciones disponibles en su idioma preferido.

Thank You!

Thank you for choosing Churchill Mortgage to help you with your home loan needs!

Our team is already hard at work connecting you with your Home Loan Specialist. Rest assured that we've received your request and will be in touch with you shortly.

social proof logos

Already working with someone at Churchill?

Find Your Home Loan Specialist

Please Select a Loan Officer