5 Reasons to Refinance Your Mortgage

Top 5 Reasons to Refinance Your Mortgage Refinancing is the process of taking out a new loan to replace an old one. The steps you take are similar to those you.

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If you refinance into a 30-year loan to get a lower payment, you’re effectively going to be paying the interest twice even if it’s at a much lower rate the second time around. Refinancing into a 15- or 20-year loan shortens your repayment period but it also means you’ll be paying more every month towards your mortgage.

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5 reasons you may want to refinance. Refinance to shorten the term of your loan. If you have a 30-year mortgage, now may be a great time to consider refinancing. With record low interest rates, you may find that a 15-year mortgage is not much more expensive than the 30-year loan payment you have been paying.

18 Reasons to Refinance Your Mortgage 1. To get a lower interest rate. 2. Because your borrower profile has improved. 3. To change loan products ( FHA to conventional ). 4. To reduce the loan term. 5. To increase the loan term. 6. To switch to a fixed-rate mortgage. 7. To go adjustable.

5 Reasons to Refinance Your Mortgage.. We want to give you 5 reasons why you should refinance your loan and also let you know when refinancing may not be the best idea. Take Advantage of Lower Rates; This is a very popular reason to refinance. The idea behind it is simple.

 · This is a very popular reason to refinance. The idea behind it is simple. If current interest rates are lower than the interest rates were when you took out the mortgage, you should consider refinancing. According to Investopedia, a good rule of thumb is that you should refinance if it can reduce your interest rate by two percent.

A: There are many reasons to refinance your 30-year or 15-year fixed rate mortgage. The first and best reason. The 30-year fixed rate has fluctuated between about 5.6 percent in June 2009 and a low.

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Five Reasons to Refinance Your Mortgage When you commit to buying a home with a mortgage, it’s usually with the plan of paying it off with monthly payments over 15 or 30 years. During this long timeframe, your life circumstances could change, or the economy could change.