You should refinance only if you will benefit from this transaction because:
- You can get some cash out to spend on something that is important to you
- You can lower your interest rate
- You can lower your mortgage payment
- You can shorten your loan term (30 years down to 15 years for example)
- You can restructure your debt (by paying off higher interest rate credt cards, etc.)
Sometimes, customers find that even though their interest rate may increase on their mortage, their overall monthly expenditure goes down because they pay off credit cards that have higher payments than a mortgage would. This can be counter intuitive, so we recommend talking to one of our professionals. We can crunch the numbers for you and show you if you will save money, and we'll also tell you if you should just stay put.
Return to Mortgage FAQ Main Index Page
