Reasons to Refinance in 2019
This year brings good news for homeowners with the current mortgage market presenting a window of opportunity for refinancing due to continued favorable mortgage interest rates, increased home values, and tax law changes effective 2018* due to the Tax Cuts and Jobs Act (TCJA).
For many homeowners, refinancing today offers the opportunity to reduce the rate on your mortgage in order to reduce monthly mortgage payments, save money, meet certain financial goals, and more
Here are a few reasons to consider refinancing in 2019:
- Lower your interest rate: If it’s been a while since your last mortgage check-up, there’s a chance you could be paying a higher interest rate than today’s rates. By lowering your interest rate, you’ll save money on your monthly mortgage payments that frees up cash to help meet other financial goals or live more comfortably financially month to month.
- Shorten the life of your loan and save money: Refinancing to shorten a 30-year vs 15-year term can save you money. With this extra cash, you may be able to retire earlier if the loan is paid off earlier, travel, or even build up investment portfolio.
- Drop the PMI: With the current increase in many home values, a refinance could help you drop PMI (premium mortgage insurance) to help lower your monthly payment amounts.
- Pay down debt: Use the extra monthly cash saved by lowering your mortgage payment to help pay down debt, or even do a cash-out refinance to pay off credit card debt, car loans, personal loans, school loans, etc.
- Make necessary home renovations: If you love your home and plan to be there for a while, you may want to consider a cash-out refinance loan to get the money you need to make the home renovations you’ve always dreamed of.
Inlanta Mortgage offers different types of refinance loans to meet our customers’ needs for each unique financial situation. If you’re wondering if refinancing is right for you, contact your local Inlanta Mortgage loan expert to get started.
2018 New interest rate deductibility limits! *
Mortgage interest deduction. You generally can deduct interest on mortgage debt incurred to purchase, build or improve your principal residence and a second residence. Points paid related to your principal residence also may be deductible.
For 2018–2025, the TCJA reduces the mortgage debt limit from $1 million to $750,000 for debt incurred after Dec. 15, 2017, with some limited exceptions.
Home equity debt interest deduction. Before the TCJA, interest was deductible on up to $100,000 of home equity debt used for any purpose, such as to pay off credit cards (for which interest isn’t deductible). The TCJA effectively limits the home equity interest deduction for 2018–2025 to debt that would qualify for the home mortgage interest deduction.
*2018-19 Tax Planning Guide by Sikich LLP, CPA