Refinancing is often used to lower your interest rate and mortgage payment. If rates have dropped since you last financed your home, you may want to consider refinancing. Other common reasons to refinance include paying off a balloon payment, converting an adjustable rate loan to a fixed rate loan,to remove mortgage insurance or to extract cash equity in your home (cash out). A few reasons for cashing out include: home improvement, an education fund, and consolidating debt.
Another way to convert equity in your home to cash is a "home equity" loan. A "home equity" loan is an alternative to refinancing if your home loan has a very low rate compared to current interest rates or if you have a prepayment penalty on your loan.
- Reduce Your Interest Rate
- Remove Mortgage Insurance
- Lower Monthly Payments
- Change From Adjustable Rate to Fixed Rate
- Change In Length of Terms (Either increase or decrease the number of years)
- Change The Mortgage Type (FHA to Conventional, etc)
- Cash Out Equity for Home Improvements
- Cash Out Equity to Consolidate Debt
- Cash Out Equity for Other Reasons