There are many reasons to consider applying for a refinance
mortgage. Refinancing your loan allows you to take advantage
of improvements in your credit or drops in market interest rates.
Consolidating your other high interest debt loans into one home
loan may not only lower your monthly payments, but the interest
is also tax deductible. If you are on an adjustable rate mortgage,
refinancing is also an opportunity to lock in at today's rates on a
fixed rate mortgage.
You may also want to look at how long you plan on keeping
the home and if the value of the home is going up or down. If
you are staying more than three years and can obtain a rate
reduction of more than 1.5% it is most likely in your best interest
to refinance at today's rates. Applying for a refinance mortgage
does incur many of the same closing costs as the original
mortgage.
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