South Carolina Refinance Loans Refinancing to Change Your Term

Most people refinance to get a different interest rate or to get cash out at closing. While these are both great reasons to get a South Carolina refinance loan, there is another and it involves refinancing for the sole purpose of changing the term of your loan.

Refinancing to Shorten Your Term

Most people choose 30-year loans because they are the popular option. Unfortunately, with these types of loans, you end up saddled with a monthly payment for three whole decades. A South Carolina refinance loan can change that and give you a term of only 15 years instead. By shortening the term of your home loan, you can pay off your loan and build equity fast.

Refinancing to Extend Your Term

Though a 15-year loan can save you money in interest, it can sometimes make for higher payments. No matter how far you are into your current loan, a South Carolina refinance loan can extend your term. Depending on how long you have been paying on your original mortgage, this could lower your payment significantly. While this option can be great if you need to make better use of your monthly income, you should carefully consider the decision and make sure that your savings outweigh the extra that you will be required to pay in the long term.

Other Refinancing Considerations

Although refinancing to change your term can save you money, you will want to carefully consider some of the other financial implications associated with refinancing, such as the cost of the loan. Currently closing costs on South Carolina refinance loans average $2, 988. Refinance rates in South Carolina are somewhere around 5.72 percent on 30-year loans and 5.46 percent on 15-year loans.