- To secure a lower interest rate
- To change the length and other terms of the loan
- To cash out equity for investing or other large purchases (to invest in a second property, college tuition, home remodel, a new car)
- To consolidate high-interest debt for long-term savings
- To remove mortgage insurance
- Like any major financial decision, there are benefits and advantages to refinancing that homeowners need to consider.
Is refinancing right for you?
QUESTION 1: Can you save at least 1 percent on your mortgage interest rate?
QUESTION 2: How long do you plan to stay in your home?
QUESTION 3: Do you want to access the equity in your home?
QUESTION 4: How has your credit score changed since receiving your current mortgage?
QUESTION 5: Are you interested in a mortgage that offers a different repayment length, or a fixed vs. variable rate?
QUESTION 6: Can you afford to cover closing costs?