1. Refinancing your home is an extremely important option to homeowners for many
different reasons. While there is a cost involved, typically the benefits far outweigh the
negatives and homeowners sleep easier at night following a refinance. Here we will
address a number of very important reasons why homeowners seek to refinance their
homes and the benefits it may give to these individuals.
Interest Rate Reduction
Currently, interest rates are at an all time low in the United States. We haven’t seen
interest rates this low in decades, as they have been this way for about the past 12
months. Although the rates do vary daily so it is important to check with a lender or
mortgage professional, if you happen to be eligible to refinance from a higher interest
loan, you could save thousands of dollars simply by refinancing. This will also
potentially lower your monthly payment, meaning more money in your pocket to pay
your monthly expenses. There are closing costs and other fees to be concerned with, so
consulting with a professional is necessary to see what your true savings amount will be.
Removing/ Adding Names from a Mortgage
Many people choose to refinance their homes due to marriage or divorce. If you become
married, it is a good idea to be added to the home loan you are paying towards in case of
unfortunate divorce or death. Similarly, if a couple becomes divorced, it is typically
necessary to remove one party from the deed. This can be done through a refinance and
the name removal is typically ordered by the courts in the divorce proceedings. Some
people choose to sell, but many people who want to stay in the home will refinance,
removing the other party from the loan and ownership of the property.
Solid Loan Options
People also often choose to refinance simply to change programs. If a person gets into
their home using a balloon payment program, typically within a few years they choose to
refinance to move to a safer, fixed rate mortgage. Of course the value of this depends on
your overall goals and how long you plan to live in your home, but for many, this is a
decision that solidifies future financial safety and avoids the mortgage increases
substantially in the future.
Get Rid of High Interest Debt
Those who experience unfortunate personal losses like disability or loss of a job almost
always begin putting living expenses on credit cards. If you wind up in severe debt but
have a lot of equity in your home, many people choose to refinance and pull money out
of the equity, to pay off high balance, high interest credit cards, and to settle into one
monthly payment versus owing many creditors money. This can be a fix in many cases,
although you must first have equity in your home to be able to do so.

2. Refinancing can be the key to putting yourself on a better path. If you are interested in
refinancing, speak with a mortgage lender right away to see what you may qualify for.
American Capital Home Loans is your professional mortgage company specializing in
home loans, mortgage, refinancing, reverse mortgages, debt consolidation, and home
equity loans. Serving Austin, Dallas Mortgage, Houston, San Antonio, Ft Worth, and all
of greater Texas.