Changing the interest rate on your mortgage could save you thousands of dollars over the life of the mortgage. If your credit score has improved since you initially got your mortgage, why not take a look at what interest rates you would qualify for right now? The changes in the economy could also have driven the rates down, even if your score stayed the same.
Check out your options to find out if you can lower your interest rate and you can make your home more affordable than ever.
The way that this works is simple: You need to refinance. You apply for a
loan with a new company, based on what you owe for your home right now.
If you have been paying off the house for ten years, it could be far
less than you initially paid. You can then get a better interest rate.
When they approve you for the new loan, they go to your lender and use
the money to buy up what you owe. Your lender that you have right now
does not really have a choice since they are paying off what you owe on
You then get new monthly payment totals based on how long you want the
mortgage to last. Some people push them back out to 30 more years to get
incredibly affordable payments. Others choose to continue paying for
the amount of years that they have left so that they can have the home
paid off on schedule.