Refinancing Your Mortgage: When You Should Consider It

Your mortgage is a valuable financial tool. Understanding why you should consider refinancing your mortgage will make it easier for you to figure out how you should refinance it. Taking a few minutes to go over the benefits will give you an idea of what you will gain from refinancing your mortgage.

Reduce Your Payments

One of the primary reasons behind refinancing a mortgage is lowering the payments you make every month. Extending the life of your loan or getting a lower interest rate will decrease your monthly payments. Although the length of your loan may be extended, lower payments will allow you to pay more than the minimum monthly payment and apply that extra towards the loan principal. Reducing the amount of your monthly payments can also free up money each month to pay off other debts.

Make the Most of Your Equity

Your home’s equity can be extremely useful when it comes to paying off other types of debt. By refinancing your mortgage, you can access the equity in your home and use it for various purposes. You can access as much of your equity as you need to accomplish your financial goals. The more equity you have in your home, the more you can borrow. Many people borrow against their home’s equity to remodel or improve their home, raising its overall value.

Shorten the Life of Your Loan

For some people, refinancing your mortgage may be a way to shorten the life of your loan. If your original mortgage was a 30-year loan, refinancing could give you the option to shorten the life of your mortgage to 10 or 15 years. The interest rate may be somewhat higher, but your loan will be paid off much sooner, and less money will be spent on interest over the life of the loan. Shortening the life of your loan will also allow the equity in your home to build much faster.

Change Your Interest Rate from Adjustable to Fixed

If your first mortgage had an adjustable-rate mortgage, the rate could change over time. Interest rates go up and down with the stock market and can fluctuate frequently. Refinancing your mortgage can allow you to change your adjustable interest rate to a fixed interest rate that doesn’t change over the course of your loan. Having a fixed interest rate ensures that your payment doesn’t fluctuate, and you can keep better track of your budget.

There are many benefits associated with refinancing your mortgage. Knowing how and why you should refinance your loan is essential if you are trying to make sound financial decisions. Do you have additional questions about refinancing your mortgage?  If so, then contact the experts at Miller Carlisle Insurance Services.  Our dedicated team is eager to assist you with all your coverage needs today.

Analyzing Rental Insurance Claims: Do They Affect Personal Insurance?

As you probably know, a standard rental insurance policy consists of three types of coverages, namely-
• Personal property coverage,
• Liability coverage, and
• Additional living expenses coverage.

Each of these three-cover specific perils that include
• Unexpected damage to your rental property or your personal belongings,
• Accidental third-party bodily injury or property damage, and
• Accommodation costs, if you cannot stay at your rental property because of events already covered, such as a fire.

Still, you should avoid filing regular rental insurance claims as they are likely to affect your other premiums. Read on to learn how rental insurance claims could potentially affect your personal insurance.

1. What Happens When You File Claims Frequently?

When it comes to home renters insurance coverage, your insurer expects you to file claims occasionally. As a rule of thumb, you should avoid filing multiple claims within a 10-year period. It is because if you file multiple claims within 10 years, your insurer will likely take one of the following actions:

• Terminate your rental insurance policy
• Increase your insurance premiums

Since either of the above actions will affect your personal insurance coverage, you should file a claim only when necessary.

2. When Should You Ideally File a Renter’s Claim?

In general, you should only file a claim when the dollar value of the claim far exceeds your deductible. Note that if the dollar value of your claim is below your deductible, your insurer will not only reject your claim and even worse, but may use your claim as a basis to increase your premium. However, even if a claim exceeds your deductible, you should not file a claim if the payout will be lower than the amount you will end up paying in increased premiums.

Frequent rental insurance claims will most probably affect your personal insurance. For assistance with all your coverage needs and questions, contact the experts at Miller Carlisle Insurance Services in Carlisle, Pennsylvania. We will help you find the best auto insurance policy.