Thankfully, inflation has been slowing down of late. Nevertheless, the climb in prices we have all experienced over the past few years has left many homeowners scrambling to keep up with their monthly costs.
3 Refinancing Benefits During Inflation
Could refinancing your mortgage bring your monthly bills back down? Let’s go over some ways in which it might help.
- Refinance to a lower interest rate. For one thing, maybe you could qualify today for a lower interest rate than you are paying. This is a direct way in which you could reduce your monthly expenses.
- Lock in a fixed interest rate—or take advantage of a low introductory rate. Homeowners with adjustable rate mortgages who will be in their homes for many years can potentially save money in the future by switching to a fixed mortgage rate. If rates climb years from now, you will still pay the rate you locked in. Conversely, if you have a fixed rate mortgage but will live in your home only a couple more years, refinancing to an adjustable rate might help keep your costs down while you are still in the home. These loans come with affordable introductory rates; these rates are often lower than those for fixed rate mortgages.
- Pay off high interest debts. Consolidating your debts through refinancing is another option that could help you save. Instead of having to pay on separate high interests debts, all your debts will be rolled into your mortgage. The only interest left to pay will be on your home loan.
Find Out if Refinancing Could Save You Money
You can tell us about your financial situation during your consultation, and we can help you figure out whether you could reduce your costs by refinancing. To begin, please call us today at (540) 838-5868. We work with homeowners throughout Virginia.
