If you have already purchased a home for yourself then you most likely know what financing is. Im sure you also know what refinancing is. If not basically refinancing is getting a new loan with better rates terms or conditions and using it to pay off your existing loan. The savings that can be had can add up to the thousands of dollars, especially with mortgage rates at record low rates as they are now across the country. Even just being able to get a new rate that is only 1% (Hopefully more) lower than your current loan can save you a lot every month on your mortgage payment. The true amount you will save depends on your personal financial situation but especially with rates as low as they are now it is very probable you will save money. The money you save can be used for anything you wish. Home repairs or improvements are always good ideas but paying off other debts, tuitions, bills, car loans, or just saving whatever you want to use the money for is your choice. Here are some great benefits to refinancing a home mortgage loan:

-Lower Interest Rates.
This is the most obvious reason and the most popular reason to refinance. Always try to get the lowest rates possible but in general just a 1% lower interest rate will save you a lot of cash.

-Lower Monthly Mortgage Payments.
As a result of getting lower interest rates you will get lower monthly payments as well. This means that you will be spending less every month on your mortgage and you can use this money as you wish. The lower interest rate you get the lower the payment will be monthly for your home loan.

-Changing the Terms of Your Current Mortgage.
Rather than lowering the monthly mortgage payment of your home, some choose to shorten the overall length of their loan and still pay the same amount they are paying now. The new interest rate that you get from refinancing will allow this by saving a lot on interest payments. This is a smart long term financial decision.

-Chance to Change Mortgage Lenders.
A lot of first time homeowners basically went with whoever approved them first with decent terms. Often the decision was made with no regard for customer service from a potential mortgage lender. When you refinance you have the choice to choose a mortgage lender based on your own criteria. You know what to look for and what you do not like from your current lender and can make sure those will not be potential problems with a new lender.

-Debt Consolidation. Refinancing a home mortgage is a good way to consolidate all of your debts and bills. Paying off bills which carry high interest rates will save you even more money, especially long term. If you can improve your credit and pay off unnecessary debts which carry interest you will be in line to save a lot of money.

-Fast Results and Closing Times. Home mortgage refinancing is easily to apply and be approved for. Of course this depends on your financial situation and how qualified you are. If all goes well though and it often does you can be approved for refinancing within 1 week.

Refinancing a home mortgage right now is a pretty good decision for a lot of homeowners who are looking to take advantage of the low mortgage rates. Refinancing a mortgage is a very important decision and should not be rushed in to. Make sure you have patience and refinance the right way.

-M Petrone

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