4 Reasons to Refinance Your Mortgage
When it makes financial sense, refinancing your mortgage is a great move. You could lower your interest rate, eliminate private mortgage insurance (PMI), pay off your mortgage faster, or get cash to accomplish goals like canceling credit card debt, making home improvements or paying for college.
Lower your mortgage interest rate (and payment)
With a better rate and term, you could lower your monthly payment and save throughout the life of your loan.
Switch from an adjustable-rate mortgage to a fixed-rate mortgage
If you originally financed with an adjustable rate, you could lock in a low rate on a fixed-rate mortgage.
Eliminate private mortgage insurance (PMI)
A refinance may help you meet the loan-to-value threshold necessary to cancel your mortgage insurance.
Get cash out of your home based on your equity
If you have 20% equity in your home, you could tap into it to do things that benefit you financially, like pay down high-interest debt, finance a renovation or pay for college.
