Refinancing Your Mortgage, when and why?
Refinancing means paying off your current loan and replacing it with a new one. First of all, you should bear in mind that refinancing can either save you money or cost money. Thus, a homeowner needs to determine whether refinancing is a wise financial decision or not. There are a couple of reasons why homeowners decide to refinance such as obtaining a lower interest rate, shortening the term of their mortgage, converting from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa, and tapping into home equity to raise funds to deal with a financial emergency, finance a large purchase, or consolidate debt. All in all, you can consider refinancing as a great financial move if it is used carefully. Thus, before you refinance, take a careful look at your financial situation and ask yourself: How long do I plan to continue living in the house? How much money will I save by refinancing?