Why Refinance Your Home Mortgage?
Refinancing a home mortgage may help you to either get cash and lower your monthly payment. For most, homes are the single largest asset one owns; this makes mortgage payments the largest budget expense.
There are several ways to lower your monthly payment and put cash in your pocket even if you cannot qualify for a lower interest rate:
- Cash back refinancing allows you to take advantage of the equity you have built in your home. For many homeowners refinancing with cash back is a more affordable option than a second mortgage or home equity line of credit. Refinancing with cash back allows you to qualify for a lower mortgage rate because your home is secured by only one loan.
- If your financial situation has changed since purchasing your home you may qualify for a better mortgage rate. Many homeowners find being promoted, taking a new job, getting married or divorced changes their qualifying ratios and improves the mortgage rate they receive.
- Even if your credit prevents you from qualifying for a lower mortgage rate you can still lower your payment amount by extending the term length of your loan. Term length is the amount of time you have to repay the mortgage; the most common term lengths are 15 or 30 years. There are now 40 and 50 year terms to allow the greatest amount of flexibility when refinancing with cash back.
The cash you receive from refinancing can be used for any reason; many homeowners use this money to consolidate higher interest debt. The advantage of using the money for this reason is that you gain a tax deduction for consolidating your bills. Other common uses include home repairs and renovations, wedding and education expenses.
See the Internet’s easiest 3-question home mortgage refinancing application at refinance.net.