In most cases, the Atlanta mortgage you started out with might not be the mortgage you want long term. As the years go by and your financial situation changes, refinancing your mortgage can be a beneficial option. A rate and term refinance lets you change the terms of your mortgage and replace them with terms better suited for you. This way, you can get a new loan and pay off your old mortgage and then make payments toward your new mortgage when you refinance.
A rate and term refinance gives you your choice of term, long or short, best matched with your financial situation for when you want to pay off your mortgage along with lower interest rates.
Why You Should Consider a Rate and Term Refinance for Your Atlanta Mortgage
There are many benefits to take advantage of when it comes to a rate and term refinance. These benefits include:
A Lower Interest Rate
If interest rates are much lower now than when you originally got your loan, refinancing can help you get a lower interest rate. You can also qualify for a lower interest rate if your credit score has gone up from when you originally got the loan or you now have less debt. Even if you get an interest rate slightly lower than what you have with your original loan, you can still save a lot of money in the long run. So, it’s always important to consider refinancing whenever you can get a lower interest rate.
A Shorter-Term Length
Longer mortgage terms mean more interest. If you’re now more financially stable than you were when you got your original loan, you might want to consider a rate and term refinance. Your monthly payment will increase, but you end up paying much less in interest over the entire course of your loan. Refinancing to a shorter loan also helps you own your house much sooner which is always a positive.
A Lower Monthly Payment
On the flip side, your financial situation may have changed so that you require lower monthly payments than you did when you got your first mortgage. To achieve this, you want to refinance to a longer-term length. This gives you more time to pay off your loan.
If you’re facing foreclosure because you’re having trouble making your monthly payments, refinancing to a longer-term can help you balance your mortgage payments. While refinancing to a longer-term does lower your payments, you will end up paying more interest over time. However, if this works best for your financial situation, it’s an option you want to consider.
Contact Your Atlanta Mortgage Specialist
When it comes to a rate and term refinance, there are many benefits available to help you find the right loan that works for you.
At BrightPath, an Atlanta mortgage company, we’re approved to offer a variety of mortgages to fit your needs. We know refinancing is a huge decision, that’s why our mortgage specialists are here to help you every step of the way.
Contact us today to learn more about a rate and term refinance and see how we can help give you the interest rates and term length that’s right for you.