Mortgage Refinance

Should I refinance? We get this question all of the time. The answer varies based on your situation, but here are some common reasons:

1. Lower Rate - If you are one of the few who have not taken advantage of this low interest rate environment, you can refinance away from your high rate mortgage into a lower one. This option is especially attractive if you plan on staying in your home for the next few years or if you have had an improvement in your credit score.

2. Cash Out - You may need to tap your equity for a remodeling project or to consolidate some debts or even to take that dream vacation. In this low rate environment, sometimes it is better to refinance the whole loan to get the cash rather than add a second mortgage.

3. Change To A Fixed Rate - Many people took advantage of the lower interest rates of adjustable rate mortgages (ARM) a few years ago. Those rates will be coming up for adjustment soon, if they haven't already done so. This can cause your payment to go up if rates have gone up since the loan was taken out. This is a perfect time to go to a fixed rate loan and stop the chance of further or future adjustments.

4. Lower Payments - If you have owned a property for some time and have built up some equity, you may want to refinance to re-amortize your loan over thirty years to lower the payments that you are required to make each month.

As you can see, there are many reasons to refinance your mortgage. You should talk to someone you trust to find out if it is right for you.

You comments, as always, are welcome!

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