Refinancing
If you bought your home when mortgage rates were higher than today's rate or have an adjustable-rate loan and would like to obtain different terms, you are a candidate for refinancing your mortgage.
Refinancing does not make good financial sense for everyone. A general rule of thumb is that refinancing is worth while if the current interest rate on your mortgage is significantly higher than the prevailing market rate.
Refinancing can be a good idea if you:
- Want to get out of a high interest rate loan to take advantage of lower rates.
- Want to build up equity more quickly by converting to a loan with a shorter term.
- Want to draw equity built up in your home to get cash for a major purchase or for your children's education
- Have an adjustable-rate mortgage and want a fixed-rate loan in order to know exactly what the mortgage payment will be for the life of the loan.
