What Does Refinancing Your Mortgage Accomplish?

Refinancing a mortgage is a popular option for homeowners looking to accomplish a number of different financial goals. As we dive into this, we want to make it clear that Velazquez Consumer Law, LLC handles real estate law and is not a loan servicing company. However, we frequently speak with clients about refinancing mortgages they are actively signing or have already signed to get the most out of their money.

High-interest rates, while intimidating, shouldn’t deter potential homeowners. The possibility of refinancing at a later date, when interest rates are more favorable, is always an option. So, how does this refinancing process benefit you?

Lower Your Monthly Payments

For many, the primary incentive to refinance is reducing their monthly mortgage payments. Such financial reprieve allows homeowners the freedom to use the additional money towards other vital projects and responsibilities.

However, the refinancing path isn’t without its potential risk. There are often additional closing costs and fees when refinancing that can erode some of the anticipated savings. Timing your refinancing decision correctly and a comprehensive understanding of your own financial situation are vital elements to consider before committing.

Taking Advantage of the Equity in Your Home

On top of reducing monthly payments, taking advantage of the equity built up in your home is another main motivator. Has your home’s value appreciated considerably since you initially took out your mortgage? Perhaps you made a significant down payment that got you out ahead and has you cash positive on the value of your home? These are opportunities to get a cash-out refinance that allows you to come out of the deal with additional funds to play with.

Getting the True Value Out of Your Home

We’ve always championed the idea that high interest rates, while daunting, shouldn’t be a deterrent to the ultimate goal of homeownership. Every family deserves a home, and being held back by interest rates might mean you end up waiting indefinitely.

Refinancing is a financial strategy that recalibrates your mortgage based on your home’s current value and the lower interest rates at the time of your application. After you refinance, the amount you pay is more reflective of your home’s genuine worth.

Velazquez Consumer Law is Your Illinois Real Estate Law Firm

Conquering the real estate market is a great challenge, but Velazquez Consumer Law, LLC works for the people of Illinois, guiding them toward realizing their real estate dreams. We focus on providing thorough yet efficient real estate services that make the home buying and selling process easier for you and your family.

If you need a lawyer who will help you draft, review, and solidify your real estate contracts and provide you with all the services you need to complete your purchase or sale in Aurora, IL, or the western suburbs of Chicago, contact Velazquez Consumer Law, LLC today.

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Velazquez Consumer Law

Central to our firm is the empathetic and compassionate service we give each client that allows us to fully understand your situation and goals. Above all, our responsive and hands-on approach to your legal issues yields actual results.

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