Most people think the reason for refinancing a mortgage is to lower their rate and/or payment.
While that’s a very good reason to refinance, there are many other reasons you might want to refinance your mortgage.
Here are some other reasons to refinance…
To lower your term. Go from 30 years to 20 or 15 for instance. The rates are down. Often you can keep your payment about the same, and shave 10 years off your mortgage.
To get cash out of your home. Cash for debt consolidation, college planning, or any other reason you might need cash.
To combine a first and second mortgage. If you purchased your home with a piggy back mortgage (1st and 2nd) often the rate is high on the 2nd. You can consolidate these two mortgages into one, and lower the aggregate interest rate.
To remove mortgage insurance from FHA loans. With property appreciating the way it is right now you can often refinance out of an FHA loan into a conventional loan under 80% LTV and get rid of your mortgage insurance.
To add or remove escrows from your loan.
To pay or roll in property taxes if your loan is non escrowed and you can’t afford the tax bill this year.
If you have been considering refinancing, and have questions about it please contact me. I’ll be happy to answer your questions about it.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
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