It’s a good idea to set aside time at least once a year to assess your financial situation and to decide how you would like to move forward. While you should be making decisions about your budget and what you can spend on a much more frequent basis than that, a yearly review gives you an opportunity to assess bigger issues about how your money is being used and how you might be able to make adjustments that would work to your benefit. One of the tools that you should consider during such a session is Loan Refinancing.
When you refinance a loan, you’re basically taking out a new loan that pays off the old one. The idea is to switch your debt over into a new arrangement that has terms that are more favorable for your current needs. A common example of when people do this is to get a better interest rate when mortgage rates have changed over time. That way, they don’t have to increase the total amount that they owe, but they can borrow the money while paying a lower rate of interest on it.
There are also other situations where Loan Refinancing can make sense. If your income has increased over time, you may want to get a loan that is designed to be paid back over a shorter term than the original one. This leaves you with higher monthly payments, but a lower total amount paid since you won’t be paying interest over as long a period. It can also be a way of extending the term of a loan if you find yourself needing to cut back your monthly expenses so that you have more flexibility when it comes to where and how you work.
Village Mortgage can help you to assess your loan options and to figure out whether it would make sense to get a new loan in your situation. Whatever your reason for wanting to make an adjustment to your mortgage, they’ll be happy to help you figure out what kind of effect the change would have on both your monthly budget and your future financial prospects.
©2014 Village Mortgage Company, NMLS #6331 , CT #6331, RI #6331, Mortgage licensed lender in MA ML6331. This is not an offer to extend credit to any individual who may be entitled to a more complete disclosure per RESPA, TILA, HOEPA or any other more applicable federal, state or local law or regulation. Rates, terms, fees, products, programs and equity requirements are subject to change without notice. Village Mortgage, Equal Housing Lender.
