Delray Beach real estate is some of the best in Palm Beach County. This village by the sea offers residents everything they could ever wish for and more! If you happen to be one of those lucky individuals who has snatched up a beautiful piece of Delray Beach real estate, you might want to sweeten the deal even more by looking into refinancing your home mortgage.
There are several reasons why refinancing Delray Beach real estate may be an excellent opportunity for you.
Lower Your Monthly Payment
One of the best reasons to refinance is to try and get a lower interest rate on your mortgage. Lower interest rates mean a lower monthly payment on your mortgage, which can save you thousands of dollars in the long run. Depending on the interest rate you have secured on your mortgage, you may be able to get a lower one based on changes in your credit score or the current market conditions.
Additionally, a lower interest rate may allow borrowers to build equity in their home more quickly.
Faster Pay Off on the Mortgage
If you can afford to refinance your mortgage from a 30-year loan to a 15-year loan, you will save a significant amount of money over the lifetime of the loan. Borrowers can reduce the total amount of interest they spend on their mortgage if they can pay off their loan faster. This also will help build equity faster.
The downside is the monthly payments will be higher in the short-term because more of the principal is being paid off each month. If you can finance it, this is well worth the money.
Consolidate Debt
You may not know you can consolidate outstanding consumer debt into a new first mortgage by refinancing the original loan. Why this may be advantageous is because the interest paid on a first mortgage loan usually is tax deductible. Consumer debt is not.
This is not always the best solution for everyone across the board. It is smart to talk with a tax expert to decide if this strategy is right for you.
Convert to Fixed
When mortgage rates are low, it is time to refinance and turn that adjustable-rate mortgage, or ARM, into a fixed mortgage.
ARMs are unstable propositions for home buyers because monthly mortgage payments are dependent upon interest rate fluctuations. Even though monthly payments may not exceed an ARM loan cap previously outlined, payments may decrease or increase every payment cycle. It is a gamble on how much you might have to pay. Your interest rate is never safe until it is locked.
Is It Time to Sell?
Reconsidering whether or not your current Delray Beach real estate property is still what you and your family need may be worth your time. Understanding if your monthly mortgage rate is working for you can be a critical financial decision. Consult with a Berkshire Hathaway HomeServices Florida Realty sales professional who can help you assess your current home and whether it is time for you to list it on the homes for sale in Delray Beach roster. Call today!
