Many homeowners come to Supreme Lending to refinance their home loans in Allen, Texas, when interest rates drop. Refinancing your home at a lower interest rate can save homeowners substantially over the life of their home loan.
When you refinance your home, you are essentially replacing the home loan you have with a new one with different, more favorable terms. If you got your original home loan at an interest rate of 4% and the rates have fallen to 3%, refinancing would save you a lot of money.
When you refinance, you generally have a few options available to you. You can keep your same terms and with your new rate, enjoy lower monthly payments. You could extend the term and make even lower payments. Or, you could shorten the term and make higher payments, which could save you money in the long run because you would pay less interest and pay off your home loan sooner.
Some homeowners choose to refinance their mortgage loans because they want to switch from an adjustable-rate mortgage to a fixed-rate mortgage. Many homeowners prefer the predictability of a fixed-rate mortgage, but may have chosen an adjustable-rate mortgage when they first got their home loan because of the low introductory rates offered.
If you’re interested in refinancing your home loan in Allen, Texas, contact the mortgage lenders at Supreme Lending today.