Good Reasons to Refinance
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What are some good reasons to refinance?
Refinance rates are not static numbers. They shift up and down continuously throughout the year, which means that sometimes they're higher than your current loan rates and sometimes they're lower.
You can't refinance your mortgage every time refinance rates slip slightly below what you're currently paying, so you have to choose other parameters to base your refinance reasons on. Here are just a few examples of good reasons to refinance:
- You need to tap into some of the equity you have. You can consider an equity loan when you need to access some of the equity in your home or, if refinance rates are lower than your current mortgage rates, you can refinance and take advantage of the improved interest rates.
- You want to reduce the duration of your loan. If you want to take the remaining 25 years of your loan and reduce them to 15 years and refinance rates are low enough that they will impact your monthly payment enough to do so, this could be a great reason to refinance.
Remember, low refinance rates are not the only good reason to refinance, but they're usually a part of it.