There is an old adage that says if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. The best scenario for you to consider mortgage refinancing is when you owe a large amount and your still have many years of paying off your home loan. The reason to do a mortgage refinancing is to save money by getting a lower borrowing rate and more favorable borrowing terms. As a general rule of thumb, the truth is there are other reasons to refinance:

1. Lower your interest rate
Refinancing your mortgage is a great way to save thousands of dollars over the length of your mortgage loan. Lowering your interest rate is one of the top reasons for refinancing your mortgage. This can make a big difference in your monthly expenses and costs for housing by saving money on financing fees.

2. Building equity faster
Homeowners build equity with their monthly mortgage payments. This equity is a form of asset and can be returned to the homeowners upon the sale of the property. In this way, homeownership is a type of forced savings. Homeowners can borrow against their equity as the value of the home increases If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15 or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.

3. Convert Your Adjustable Rate Mortgage

Many homeowners who start with Adjustable Rate Mortgages desire to move to the stability of a Fixed Rate mortgage later on down the road. As interest rates fluctuate, making original deals less attractive, people will change their loan programs in order to capitalize on the best rates available.

4. Improved Credit Rating

Your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing. Over time, you will end up with a much improved credit score and a more admirable credit history. Your improved credit score helps you obtain a lower interest rate.

We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save on interest fees paid over the life of the loan.

5. Use the equity you have established - CASH OUT OPTION

A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.

6. Tax deductions

Homeowners can deduct mortgage interest and property tax

payments on their income tax return. This can mean substantial

savings for some families. Some tax deductions include:

• Mortgage interest

• Property taxes

• Closing costs

• Discount points

• Origination fees

Regardless of your reasons for wanting to refinance, Consider these components when choosing a 30 year fixed loan, obtaining low monthly payments that do not change, loan that's generally easier to qualify for, planning to remain in your house less than 10 years , mortgage companies will review the terms of your existing loan program. It will be important for us to know the purpose of the refinance and how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing. Another important point to remember with mortgage companies who refinance home loans, get a guarantee on the rate so that it is locked in during closing. This will keep the rate the same even if it should go up prior to your closing. You could even try and see if they will agree to a rate decrease if that should occur before closing

Last, refinancing your home is finding a reputable lender that will get the job done right the first time. The goal is to reduce your payments or to increase the equity of your home in a shorter time. We’re making it easier than ever for you to do the things you want to do whether it’s lowering your mortgage payment, consolidating debt, or remodeling your home. Regardless of credit history or employment status, we can help you when you start the mortgage refinancing process so you can free up the cash you need.