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Making Ends Meet: Refinancing your home

Posted at 5:00 AM, May 07, 2020
and last updated 2020-05-07 06:00:17-04

Interest rates are at an all time low and many people have started to look at refinancing their homes.

"If somebody is out there and they're hearing more about this and low interest rates and want to see if it'll benefit them, it's free to do and quick to turn those around as well," said Rob Stewart with Assurance Financial.

There are two ways a person can refinance.

The first is a cash out option.

"Not only are you changing the monthly note and that sort of thing with your mortgage," Stewart explained. "You are pulling out some of the cash and equity that you've earned on that mortgage. You're able to cash out some of that and use it to help with difficult times, put in a pool or patio. Refinancing is a great way to accomplish those goals."

The second type is a non-cash out refinance.

"You're not looking to pull money from the equity in your home, you're just looking to take advantage of the great interest rates," Stewart said. "Some people may be able to decrease or eliminate mortgage insurance because they have more equity in their home; or they may have built some credit up and their file may be stronger."

Stewart said it does not cost to inquire about refinancing your home mortgage.

If a person is worried about closing costs, Stewart said that can also be rolled into the loan.

He added that this decision is up to you and what is best for your financial future.

For more information call Assurance Financial at (337) 981-9322.