Mortgage Banner: Home Refinancing

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should your refi or not

get refi tips

You may be looking to refinance your existing home into a lower, better term mortgage loan ... or maybe some other reason. Refinancing your home requires the same steps and approval as purchasing a home.

Question: why should you refinance? When does refinancing make economic sense? What other options can you have with refinancing?

Reasons Why Homeowners Refinance

to Find a Better Rate:
the key reason why home owners refinance their mortgage is to lower their current rate. Your new rate should be 1-2 points lower than your current rate in order to benefit:


	calc:	break-even point (outside source)
	calc:	compare mortgage refi terms
	info:	how to negotiate best rates

to Get Into a More Stable Mortgage Product:
homeowners with payment-risk mortgages such as adjustables, interest-only, minimum payments, and other high-risk mortgages will refinance into more stable, fixed-rate mortgage loan.

Many of these payment-risk mortgages do not build equity and/or are subject to negative amortization:


	info:	view fixed-rate mortgages

to Arrange Better Payoff Terms:
homeowners may want to shorten or lengthen their payoff terms depending on their financial situation:


	calc:	compare mortgage payoff calc
	info:	view mortgage management
	info:	view paying off your mortgage FAST

to Get Some Cash Out:
many homeowners will refinance their home mortgage to take extra cash out for home improvements, paying off debts, college education, auto buying, and other.

They will refinance at a higher mortgage value to repay their existing mortgage loan and take cash out for need expenditures.