Buying a home in the lovely city of Eugene in Oregon is a wonderful decision that you will hardly ever regret. This place is beautiful and perfect for both business and family life. Thus, living here will definitely be a pleasure for you and your loved ones.
However, few people can afford to buy a home in one go, so they have to resort to getting a mortgage. Usually, this type of loan will be a burden on your shoulders for thirty years at the least. This is hardly an inviting future prospect, but this is the only way for many people to buy their homes.
Luckily, today you can look into home refinance Eugene OR options offered by some financial institutions. Refinancing can be a perfect solution for your problem, because it will reduce your mortgage length to 15 years. There are many benefits associated with this, but the most important of them is the fact that you will be able to build equity on your home much faster.
However, there are also some disadvantages to mortgage refinancing. Thus, you will need to consider all pros and cons before you decide to take this step. Answering the following questions will help you determine whether this is indeed a good option for you.
- Is my credit score good enough to be accepted for refinance?
Lenders today can be rather demanding, and this poses a serious challenge, because few people managed to keep their credit records unblemished during the last recession. However, if you look hard enough, you will be able to find lenders that might be willing to work with you even when you have bad credit.
- Will I be able to afford higher payments?
In the majority of cases, this is the most important question, because your monthly mortgage payments will get much bigger after refinancing. Of course, you will be able to pay off your debt faster, but this may not be a good enough consolation if you have to stretch your budget thin to keep up with the payments.
- Can I go for extra payments instead?
There are many mortgage calculators that can help you decide whether this will be the better option. If you have enough money and if the terms of your original loan allow this, you might be able to pay the debt off faster without the need to refinance the mortgage.
Is refinancing worth the trouble?
Only you can answer this question for yourself after you think this matter through.