Mortgage Loan ContractIf looking to grow equity in your home and clear off the home loan quickly, you should seek mortgage refinance rates in Utah. The large the portion of the loan you’ve paid back to the lender, the larger your equity in the home.

With a little bit of consistency and dedication, you can be on the way to join the 30 percent of American homeowners without a mortgage. Being free of a mortgage comes with a myriad of advantages. Undoubtedly, the largest benefits are the peace of mind and extra income.

Entitles you to lower interest rates

Most mortgage-free homeowners have a credit score in the range of 800 and 900 — in other words, they have a perfect score. As you grow your income and polish your spending habits, your credit score rises to reflect these changes.

At this point, it is only prudent to consider renegotiating the terms on your mortgage to reflect this development. High credit scores command better interest rates on home loans, which translates into lower monthly payments.

Lowering the interest rate on a 30-year mortgage of $100,000 at 10 percent interest by 2 percentage points saves you about $50,000 in interest.

Reduce the lifespan of the loan

On the other hand, you could use the savings to reduce the mortgage duration. Instead of decreasing the monthly payments, you can negotiate for a shorter repayment period. For instance, lowering the interest rates from 9 percent to 5.5 percent can reduce a 30-year plan to a 15-year mortgage plan.

Best of all, you will have an important change in your monthly payments after the refinancing. Doing so also saves you a considerable amount of money while building the equity of your home. If looking to build equity in your home quickly, you can’t go wrong with a mortgage refinance.

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