Nevada Mortgage Refinance lenders provide you with a number of options, depending on your personal situation and getting mortgage quotes online is now easier than ever. Choosing whether or not to refinance you mortgage is an important decision and there are a number of factors you will want to consider. While refinancing can have a number of benefits, especially in the current climate, it may not always be the best idea. One of the key factors to consider is the new interest rate of your loan. Las Vegas and Nevada in general has many Mortgage and Refinance Lenders offering very competitive rates, so securing a better mortgage rate for your Las Vegas property will likely be very simple.
Mortgage Refinancing to save interest
One of the biggest considerations in refinancing a mortgage is what Interest rate you can change to. If the currently available interest rates are lower than what you are currently paying you will immediately be saving money on your repayments. Given that interest rates are historically low at the moment, it’s likely that you can achieve some interest savings by refinancing your mortgage. Nevada Mortgage Refinance rates are quite competitive compared to other states.
Other Mortgage Refinance Factors to consider
Once you’ve decided that interest rates are favourable you will want to consider what exactly your refinance is intended to achieve. Do you want to free up equity with a Cashout Refinance? Reduce your interest payments? Pay your mortgage off more aggressively? Reduce your total mortgage payments? Refinancing your mortgage can achieve all of these things in the right circumstances.
Cash Out Mortgage Refinance
A cash out refinance is when you refinance your mortgage to a higher loan amount than you currently have. The difference between your old loan amount and the new amount is the “cash out” portion of the refinance and is effectively like cash in your hand. It can be used immediately for any purpose that you like. Click here for more information on Cash Out Refinance. Nevada’s mortgage lenders can talk you through the criteria for a cash out refinance.
1. Secure a lower interest rate. This will mean that for every $1 or mortgage payments you make you will pay off more of the debt and less interest. Even a modest change in interest rate can result in your mortgage being paid off years sooner if you keep your payments the same.
2. Increase your repayments. When you refinance, you can choose to increase your repayments and thereby shorten the mortgage term. You may have changed jobs or got a promotion, be renting out a bedroom or your partner may have returned to work. Regardless of the reason why you’ve now got more disposable income, refinancing your mortgage will allow you to step your repayments higher and knock years off your mortgage term. Combined with a lower interest rate, this is the ideal “1, 2 Punch” to get you debt free in record time.
3. Get rid of your PMI/Bad credit Terms. If you have better credit now that you did when you took out the mortgage initially, you may be able to achieve a still better interest rate, as you have demonstrated a history of good payments and are now considered less of a credit risk. Likewise if you have built equity in the property you may no longer be required to have PMI through your lender. Dropping this alone will create huge savings annually and allow you to pay off the loan years faster. If you have bad credit issues take a look at our bad credit mortgages page and see how we can help you find a mortgage loan that fits your needs.
Refinancing for lower mortgage payments
Just as you can refinance to up your repayments, Refinancing can be used to bring them down as well. The easiest way to achieve this is to secure a lower interest rate, and adjust your payments to compensate. This will mean that you are paying the same amount off your actual debt (it will still be paid off in the same time) but you will pay less interest, thereby dropping your repayments. Also, if your credit score has improved or you have built equity you may be able to avoid paying PMI or get rid of any “high risk” interest premiums you may have been initially charged by your lender. Nevada lenders tend to be quite helpful in this respect.
Finally, if you have previously been paying off your mortgage quite aggressively you can look at refinancing to extend the loan term. Paying your mortgage off over 30 years instead of 15 or 20 can drop the payments on it considerably, especially if you can get a better interest rate than you currently have.