Owning a home means that you have a very powerful financial tool at your command. Using your home as equity, you can do a second mortgage or a refinance of your current home mortgage and use some of your built up credit to cover your financial needs. This will help to right your financial wrongs by having to pay less money on your monthly mortgage payment. You can use the money you saved to pay other bills down and improve your credit standing, or use the money anyway you would like. With mortgage rates at all time lows across the country a lot of homeowners will save hundreds monthly on their mortgage. Here are some reasons that refinancing may be a good reason.

*You can refinance your current mortgage into one with a lower rate. This is probably the most common type of refinance. Lowering your monthly payments will generally happen if the current rate is around 2% or more lower than the rate you currently pay. You need to do the math to get exact savings estimates, but now is a really good time to pursue a refinance.

*You can consolidate other debts using a second mortgage or the money from a mortgage refinance. This can be a great method to reduce other debts which carry higher interest rates and waste money monthly. Credit cards, auto loans, tuition, hospital bills, can all be paid down using your home. You may be able to pay off all your other debts at once while only owing the single monthly mortgage payment. You will save money due to not having to pay interest fees on these bills and you can use that money for whatever you want.

*Use your mortgage and refinance in order to remodel your home, or other home improvements, you can get capital to start a new small business, or to inject funding into an existing business. It is a good idea either way to invest the money into other money making things such as a business or improving your home.

*If a great investment opportunity that presents itself. You can use the equity in your home to invest in other making money chances. You do not have to miss out on the opportunity of a lifetime if you refinance your mortgage correctly.

Refinancing your home mortgage can be a great decision for a variety of different reasons. There are different types of refinancing options available to you depending on your needs, credit score, home value, and how much you owe on your mortgage. A mortgage lenders web site will help you get the specifics about that companies policies and fees. If you have bad credit or problems doing your own research, it may be worthwhile to get a mortgage broker. A mortgage broker specializes in finding the best rates and terms for people who are in unique situations. There are fees associated with a mortgage lender, but these fees usually are outweighed by the additional savings that can be had. Goto your current lender first and get a written estimate. Shop that estimate around to the different mortgage lenders available all over the internet. Most of the time a lender will try his best to match or somehow better the estimate you brought them.

-M Petrone

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