Affordable Financial Services
Refinance Mortgages and Loans
Refinancing allows homeowners to reduce their mortgage costs by taking advantage of lower interest rates.
There are many reasons a homeowner may choose to refinance, some of which are listed below. Affordable Financial Services can educate you on your options and help you make the best decision to help you save as much money as possible. Feel free to contact us with any questions you may have.
Fixed Interest Rates
Fixed interest rate mortgages are generally considered to be the safest option because a fixed interest rate will remain consistent for the duration of the mortgage. Since your monthly payment is guaranteed not to change, you can better budget your other finances to make sure your mortgage gets paid regularly.
If you obtain a fixed interest rate prior to a rise in the standard interest rate, your fixed rate protects you from that increase. However, if the standard interest rate drops after you obtain your mortgage, you will not be able to take advantage of the new, lower rate.
Many people choose to refinance once the standard rate drops significantly. This way, they can take out a new loan, at a lower rate, to pay off the balance of their first mortgage, effectively reducing their interest to the current rate.
Variable or Adjustable Rate Mortgages
Unlike a fixed interest rate, an adjustable rate mortgage (ARM) is subject to change with adjustments to the standard rate. In many cases, ARMs appear very attractive to the homebuyer because the interest rate starts out very low. It is important to remember, however, that the rate will almost certainly increase. Often, it can be beneficial to convert your ARM to a fixed interest rate through refinancing.
If you are considering refinancing in hopes of reducing your interest rate, you must obtain a thorough understanding of the terms of your current loan. Sometimes, your ARM may not live up to its poor reputation and refinancing will not benefit you in the long run. Affordable Financial Services believes that every situation is unique and there is no cookie-cutter solution to apply to every loan. If you are no longer satisfied with the terms of your current mortgage, we can help you become more educated about your options.
Interest-Only Loans
Interest-Only Loans require the borrower to pay down interest for a set period of time before the bill increases to include payment on the principal. Interest-only loans are appealing because they allow a buyer to borrow a greater amount without having to make large payments right away. Often, at the end of the term during which only interest is paid, the borrower will seek to refinance in an effort to keep his rates low or to buy more time before the principal has to be paid. If you find yourself in this situation, contact Affordable Financial Services to discover what is the best solution for you.
Affordable Financial Services will help you to make the best choice for your refinancing goals. For more information, contact Affordable Financial Services today.
Contact Affordable Financial Services for details:
Toll Free: 1-888-500-0282
