REFINANCING YOUR HOME
Interest rates are at historic lows, and that is sure to make refinancing look attractive. There are several refinancing options, but you should first consider whether it’s the right time to refinance. First, you must consider how much longer you expect to remain in the home. If you only plan on staying in your current home for four years or less, then refinancing may not be the option for you unless you can recoup the costs of refinancing well before you plan to move.
Homeowners who want to refinance have several options. Refinancing is a way for homeowners to get money out of their home, lower their interest rate, extend the loan repayment period or even consolidate debt.
Lowering Your Interest Rate - With historically low interest rates, many borrowers are looking to lower their monthly payments and reduce the interest expense on their homes.
Cash Out Refinancing - A Cash Out refinance allows homeowners to refinance their existing mortgage. The cash may be used for debt consolidation, home improvements or paying off subordinate liens (i.e. second mortgage or equity lines of credit).
Consolidating Debt - Some choose to refinance to consolidate their debt. This is a great option for homeowners with credit card or other debt with high interest rates.