Let’s face it, California isn’t the cheapest state to live in. That’s probably why most people decide to get a mortgage when buying their first house rather than paying in cash — which would probably bankrupt them considering Cali’s perpetually rising property prices. However, as the years go on, you might realize that the time has come to refinance your mortgage. There are quite a few benefits to doing this. First of all, you’ll get a lower interest rate which is the biggest advantage and can make it easier to pay your debt off.
Beyond lower interest rates, you also won’t have to pay as much if you refinance your mortgage. Most mortgage refinances end with lower monthly payments. This might not seem like a big deal at first but it’s extra money in your pocket that you can save or invest — thus paying off your home loan even faster once your stocks or bonds pay off. The final benefit to refinancing your mortgage is the fact that you can get a shorter term which is always favorable if you can afford it. That’s all for now and happy refinancing!