St. Louis American
moneywise APRIL 9 – 15 • B9
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Is refinancing your home a smart move for you?
Helpful advice to make the decision easier By StatePoint Refinancing a home can be a smart move – if you time it well and understand the factors involved. Refinancing means replacing your current mortgage with a new one, and doing so will result in a new rate, term and monthly payment. While refinancing does have some upfront costs, taking this step could improve your financial situation.
Even small differences in mortgage rates can have a big impact on your monthly payment.
Reasons to refinance
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Some of the best times to consider refinancing include: • When mortgage rates are lower than the rate of your current mortgage. Even small differences in mortgage rates can have a big impact on your monthly payment, and the total
cost of your loan.
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• When your financial situation has improved and you can secure a loan with a shorter term to build equity in your home faster. • When your adjustable-rate mortgage is adjusting upward and you want to convert to a fixed-rate mortgage for the security of consistent payments.
• When you’ve built up significant equity in your home and could use the money from a cash-out refinance for home improvements or to improve your financial situation. With a cash-out refinance, you’re refinancing your mortgage for more than you currently owe. In return, you’re getting a portion of your equity back in cash.
See Refinancing, B11
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