There are so many reasons to consider a refinance. Most commonly is lowering your interest rate and/or the term of your loan. This can be very advantageous. Your loan originator can help you see not only how much you will save each month, but also over the life of the loan. Here is a list of potential reasons to refinance:
- Lowering your interest rate
- Reducing the term of the loan (for example, from a 30 year to a 15 year term)
- Removing a borrower due to a divorce
- Pulling Equity from the home for improvements like a new roof, new kitchen, flooring, etc.
- Pulling Equity from the home to pay off and consolidate other monthly debts
- Pulling Equity from the home to purchase another property
- Pulling Equity for Federal taxes, vacations, large purchases of boats, cars, etc.