There may be a variety of reasons to refinance your mortgage. The most commonly known is to reduce your interest rate. However, this does not always make the most financial sense as mortgage loans are amortized (if you are on a fixed rate term) 365/365 days. This means that you can in fact reduce your interest rate any time you want by making additional payments.
That being said, if you have equity of over 20% in your home and are carrying other high interest debt it makes the most sense to take a cash-out mortgage and consolidate it. Short term debt can carry high interest and cause a lot of stress and heartburn for clients. Because you can always pay more toward your mortgage and have it benefit and reduce the full amount of interest you pay, you’re making a solid financial decision to refinance.
Contact me today for a free mortgage consultation to determine if refinancing your current mortgage is a viable option for you.