<% String pageType = "About"; %> <% String subPageType = "Mortgage Library"; %> <%@ include file="includes/header.inc"%> When Should You Refinance?

When you refinance your home, you replace your current mortgage with a new loan that has more favorable terms. You can lower your monthly payments if current interest rates are below the rate on your mortgage. You may chose to refinance in order to take advantage of a different type of mortgage, such as a fixed rate versus an adjustable rate mortgage. Spreading out payments over 30 years, instead of 15 will also reduce your monthly payment.

When you refinance, you can choose to borrow just enough to pay off the mortgage balance you owe. If you have enough equity, you may be able to borrow an additional amount through a “cash-out” refinancing. You can use this cash to bay off other debts, such as an auto loan, credit card balances, or for other purposes.

Before you refinance, be sure to consider all the costs of refinancing, including closing costs, application costs, and loss of tax-deductible mortgage interest. Refinancing can help you reach your financial goals by lowering your monthly payment, consolidating your consumer debt and combining monthly payments.

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