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4 reasons for mortgage refinancing

4 reasons for mortgage refinancing

If mortgage refinancing (mtg refi) rates today are low, many homeowners will rush to refinance their mortgages. It is quite appealing to opt for mortgage refinancing when one can secure a lower rate. This often helps in lowering monthly payments. In addition, refinancing helps pay off the mortgage quicker; some even cash out the equity on their home.

Here are few reasons why one should consider mortgage refinancing:

Get a lower interest rate
If mtg refi rates are low, getting a mortgage refinancing makes complete sense. This is because the interest rate on the existing mortgage will get lower. There can be a saving of nearly 1 to 2 percent. With lower interest rates through refinancing, one can save money. Moreover, there will be an increase in the rate of building equity on the house. In addition, monthly payments will become lower. It is usually recommended to opt for refinancing when the interest rate can be lowered by a minimum of 2 percent.

Reduce the loan term
Whenever mtg refi rates fall, homeowners can take the opportunity to get a shorter loan term on an existing loan. However, there won’t be much change in the monthly payments in such cases. The repayment term almost reduces by half, with any change to the monthly payment amount. In some cases, the monthly payment might rise slightly. So, it is important to do the due diligence before opting for mortgage refinancing.

Convert Fixed-rate or ARM
In most cases, adjustable-rate mortgages (ARMs) offer lower rates compared to fixed-rate mortgages. However, if there are periodic adjustments, the rate for an ARM may be more. In such cases, it is beneficial to convert to a fixed-rate mortgage with lower interest rates. This will help in securing against future hikes in the rates. On the other hand, for homeowners who do not plan to stay in their current homes and want to quickly pay off the monthly payments, converting a fixed rate to ARM is beneficial. This is useful if the mtg refi rates for ARM are falling.

Get some quick equity
No matter what the mtg refi rates are today, refinancing a mortgage can be risky. Hence, homeowners must have a solid reason to want to go the refinancing way. For many, a major emergency expense often requires them to tap into the equity of their homes. In such cases, mortgage refinancing can be a sound decision. College education, home remodeling, or medical emergency are some of the reasons why some prefer to refinance their mortgage.

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A look at some of the best free investment advisors

As a beginner investor, investing too much money at the start can be quite difficult and overwhelming. However, if you choose the right brokerage account, you can earn a lot back from it in terms of investment knowledge. So if you are looking for the best cost-free investment advisors to provide you with long-term portfolio management services, then you have come to the right place. Here is our collated list: Interactive BrokersInvestment Brokers has an entity known as IBKR Lite, which offers commission-free trading on various commodities. It mainly covers exchange-listed stocks as well as exchange-traded funds (ETFs). It also offers low-priced access to various global markets without any account minimum or inactivity fee. Additionally, it offers the best competitive interest rates, while its client portal, which offers trading and account management services, is highly preferred by users. One of the most notable points is that IBKR Lite has been around for over 40 years, having earned the trust of a vast client base. You Invest by JP Morgan ChaseYou Invest Trade, offered by JP Morgan Chase, is one of the best low-cost investment advisors. It is complete with a range of commission-free ETFs and stocks that can be traded online. It does not only help you research investments but also aids you in managing and trading them with a plethora of online tools. There is also an option to manage portfolios and trade on your own; and you do not need an account balance to start using this platform. SoFi Active InvestingSoFi Active Investing gives you the opportunity to trade stocks of brands that you are particularly keen on. Apart from being a system that requires no fees or account minimums, it is also a community wherein you can interact with fellow investors through various events. You can also trust SoFi to come up with discounts and invites to these events. In addition, SoFi has plenty of online resources available for your perusal, thereby enabling you to further explore your investment interests. E*TradeWith plenty of investment options in stocks and ETFs, you can go for commission-free trading by E*Trade, which comes with a complete range of investments coupled with professionally handled accounts. It also has intuitive platforms offering you the best in mobile and online trading. E*Trade lets you make up to 30 stock and option trades per quarter, at no cost. The platform is quite user-friendly as well. Start by setting your goals, after which you can open your account, and then choose the investments that you wish to add to your portfolio. TD Ameritrade With no commission fee on online stock trading, TD Ameritrade can be considered when you are just beginning to invest without having to pay a fee. This provider offers an ace trading experience with a variety of ETFs listed on its portal. One of the topmost options available in the market, TD Ameritrade also provides you with access to important trading tools and resources. The aforementioned list of best investment advisors can help you as you navigate the different investment options that are available to you. Make an informed decision once you have analyzed all the offerings and weighed them against each other.

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Top automated investing services that make investment easy for all

Automated investing services or Robo advisors are becoming popular by the day, and financial experts around the world only expect to see a surge in their usage. This is because these intelligent services offer one crucial advantage that many investors benefit from: low-cost financial advice. With many top financial services companies jumping in the race to provide customers with the best automated investing services, there are plenty of great options available for every kind of investor.What is a Robo advisor and how much does it cost?A Robo advisor is a digital platform that provides algorithmic-driven money management services that require virtually no human supervision. It does this by collecting client data like financial situation, future goals, and other details through an online survey. This data is then used to automatically manage clients' assets and provide them with the most suitable financial advice. Robo advisors are immensely cheaper than human financial advisors. Most services only charge an annual management fee that is anywhere between 0.25% and 0.5% of the account balance. Depending on your need, you can even find good Robo advisors that offer services free of charge and low minimum balance value. Top Robo advisors in the marketThere are several low-cost Robo advisors that you can choose based on your needs and preferences. Here are some of the best automated investing services or Robo advisors available in the market today.BettermentBetterment is one of the oldest and the most popular players in the industry. It allows clients to invest in a range of funds chosen for you to improve returns. It offers automatic rebalancing, tax-loss harvesting, a personalized retirement plan, and can even sync your outside holdings like bank accounts and any other investments. At extra cost, you can up your investing game by talking to a certified financial advisor on the phone.Management fee: 0.25%Account minimum: $0https://www.betterment.com/investing/SoFI InvestA go-to choice for student loan refinancing, SoFi has now expanded its services into automated investing with its user-friendly investment management system. The company provides goal-based planning, automatic rebalancing, and diversifies your money to help reach your financial goals. Plus, you’ll receive member benefits like career services, discounts on SoFi products, and the opportunity to speak to a human advisor—everything at zero cost. Management fee: noneAccount minimum: $1https://www.sofi.com/invest/automated/WealthfrontWealthfront is one of the largest automated investing companies that offer both short and long-term financial goal planning. Its software builds a diversified portfolio of low-cost index funds to improve your returns and offers time-tested investment strategies that automatically look for profitable opportunities. Management fee: 0.25 percentAccount minimum: $500https://www.wealthfront.com/Charles Schwab Intelligent PortfoliosCharles Schwab is one of the most trusted financial services companies that launched its own Robo advisor that helps build, monitors, rebalances a diversified portfolio based on your goals, and provides 24/7 customer support from US-based service professionals. With Schwab, you are not charged any advisory fee or commission and can invest in a portfolio of low-cost exchange-traded funds (ETFs).Management fee: noneAccount minimum: $5,000https://intelligent.schwab.com/

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