How to Refinance: Is the Timing Right For You?

By Debbie Wilson
LoanPage.com Columnist

Refinancing can be about much more than simply lowering your interest rate. Consolidating debt, fixing your rate, eliminating mortgage insurance, and enjoying the sheer convenience are other great reasons to consider why right now might be the perfect time for you to refinance.

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Reduce Your Payment

One important aspect of refinancing your mortgage is your ability to ease the financial burden of paying a high annual percentage rate (APR). By refinancing, you can take advantage of today's low rates and reduce your monthly payment. Or, perhaps you currently own a 15-year mortgage loan. By refinancing to a 30-year mortgage, you can stretch out your payments and free up some much needed cash.

Consolidate Your Debts

Refinancing can be a great way to reduce and consolidate your debts. Or take the windfall that comes from lowering your payments and pay off that auto loan, credit card, medical bill, or tuition.

Fix Your Payment

If you currently own a variable rate mortgage, refinancing might allow you to control your finances with more certainty. By locking into a fixed rate mortgage, you can eliminate fluctuations in your monthly rate and direct those funds to other expenses or into savings.

Find Convenience and Save Money

Finally, refinancing options may allow you to consolidate first and second mortgages. Second mortgage rates are generally higher and consolidating a first and second usually results in a lower rate, payment, and one less check to send out each month.

About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.

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