Many homeowners are looking into refinancing their mortgage. If done correctly, there are many benefits to a homeowner who refinances. Right now, interest rates are near all time lows, and millions of homeowners can take advantage of that by refinancing. Here are 3 good reasons to refinance a mortgage now.

-Mortgage Rates are Low
Many homeowners have an interest rate that is much more than the average rates are now. Homeowners who purchased their home just a few years ago are probably paying almost double the interest than they would pay today. However, new refinancing and modification programs help millions of homeowners get into a better, more affordable mortgage. Refinancing a mortgage into a lower interest rate can shorten your total loan term, or lower the monthly payments.

-Change the terms and conditions of your home loan
Many homeowners have an ARM loan or would like to change terms, conditions, or the length of their existing mortgage. Refinancing will allow a homeowner the chance to get out of an ARM loan, and into a fixed rate mortgage. Also, terms, conditions, and the length of the home loan can be modified. Getting a home loan extended in length will lower monthly payments, sometimes though at the expense of more interest payments in the long term.

-Cash Back Mortgage Refinancing
Many homeowners would like to tap into their homes equity, and get some cash back from it. When a homeowner does a cash back mortgage refinance, they must have equity in their home. When refinancing like this, the new mortgage is bigger than the old one. The difference in money between the two loans can be pocketed by the homeowner. Generally, a home equity loan has lower interest rates than traditional personal loans. Always remember though that all money borrowed must be paid back.

-M Petrone

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