The Benefits of Refinancing: More Than Just Lower Rates!

November 08, 2024 – St. Louis, MO –

A lower interest rate is arguably the most popular result of refinancing your home loan. Lowering your rate can help keep more money in your pockets every month. This fact alone is reason enough for some homeowners to start the refinance process. But at Gershman Mortgage, we know that refinancing has more advantages than just a lower interest rate.

• More predictable monthly payment: Do you have an Adjustable-Rate Mortgage (ARM)? Refinancing from an ARM to a Fixed-Rate Mortgage is a great way to keep your monthly mortgage payment more predictable, as you won’t have to keep track of changing rates.

• Access to home equity: If you opt for a cash-out refinance, you have the ability to access your home’s equity for things like paying for large home products, paying down some credit card debt, or unexpected medical bills. Let your equity foot the bill for a change!

• Possible removal of private mortgage insurance: Did your original mortgage financing require monthly private mortgage insurance payments? Odds are, your home may have increased in value, and if your loan-to-value (LTV) is now above 80%, refinancing can eliminate that requirement and decrease your overall mortgage payment!

• Shorter term length: If your current mortgage has a 30-year term, you can refinance to shorten that term to 15 years. Yes, your monthly principal and interest payments will likely increase, but you’ll pay them for a much shorter period and build up your home equity much faster. Also, interest rates tend to be lower for 15-year term mortgages than for 30-year mortgages. Ask your Gershman loan officer to run some options for you!

A lower interest rate is usually the main attraction for refinancing, but we know there’s more in it for you than that. You could also refinance to take advantage of converting an ARM to a fixed-rate loan, tap into your home equity to pay for big-ticket items, eliminate the added cost of mortgage insurance, or reduce the term of your loan. At Gershman Mortgage, we make refinancing a slam dunk! Contact us today to get started.

About Gershman: Communities, families, and homes are at the heart of what we do at Gershman Mortgage. Our founding principles are based on the core values of honesty, integrity, the entrepreneurial spirit, and putting our customers first. We are passionate and committed to customer service and strive to ensure that we exceed the expectations of our customers. We are a customer-centric company devoted to creating and maintaining long-lasting relationships.

NMLS #138063 16253 Swingley Ridge Road Suite 200 Chesterfield, MO 63017 (800) 457-2357 Equal Housing Lender.

Written by Alli Wideman 11/08/2024 for Gershman Mortgage