Popular Reasons People Refinance In Arizona

What are some of the most popular reasons that people in Arizona refinance? Well, there are probably hundreds or thousands of reasons that someone refinances their home — but I thought I would take a look at 3 of the more popular ones:

• Mortgage Rates Go Down
• Lower Payments
• Get A New Mortgage Program

Mortgage Rates Go Down

Whenever interest rates go down, people rush to refinance — that is until recently… most people who refinance for this reason have already refinanced here in Arizona. The lower the interest rate on your mortgage, the lower your monthly payment — and the less interest over the life of the loan that you pay.

Lower Payments

In addition to lowering the interest rate on your mortgage, another way to get a lower monthly payment is to increase the loan term. By going from 15 years to 30 years, you can lower your payment.  You can also refinance out of an FHA loan into a conventional loan to get rid of mortgage insurance — which is another way to lower your payment.

Get A New Mortgage Program

The most popular thing to do when switching mortgage programs is to go from a fixed rate mortgage to an adjustable rate mortgage.  There are other reasons that people switch from one program to another, but this one is the most common in today’s environment.

Debt Consolidation

If there is sufficient equity, sometimes paying off consumer debt by combining all debts into one lower monthly mortgage payment can significantly reduce the short-term deficits in a budget.  However, it’s important to keep in mind the total cost of that debt by adding it into a 30 year mortgage payment.

Are you in a situation where you don’t know if refinancing makes any sense in your situation? Be sure to call us to find out.