Refinance Loans

• Family expenses –
  Probably expenses expanded (congratulation for your children ;-))
  
  
• Income –
  Probably grew (but not enough).
  
  
• Home value -
  Is different then it used to be.
  
  
• Credit reputation –
  Hopefully got better (according to statistics).
  
  
• Interest rates –
  Hopefully the interest rate decreased during the years and it is lower significantly than it used to be when you took your mortgage.
  
  

Refinance Options

• Reduce your monthly payments –
  During the time there are changes in a family lifestyle, different lifestyle means different expenses. Fit your monthly payments to your current budget.
  
  
• Lock a better interest rate than your current one –
  If interest rates decreased since you took your mortgage and seems to be low, it is recommended to check the possibility of locking in the low interest rate, in order to save money.
  
  
• Possibility of cash out –
  We live this life only once, so we should not delay things like home improvement, education, vacation, new car etc' if it is not necessary. In many cases it is possible to refinance to a larger amount and use the margin between the old mortgage and the refinanced one for the mentioned above targets.
  
  
• Improve current terms of mortgage –
  If your credit reputation got better or interest rates decreased you should check what current loans terms are offered in the loans market, probably you will find a better deal that suit your current lifestyle.
  
  
• Tax deductible interest –
  Since the loan is secured by your home, the tax for the interest is deductible, therefore, in the majority of cases, this type of loan is preferred over unsecured loan.
  
  
• Interest rate decreased over the years –
  If this is the case, you can save lots of money by refinancing your mortgage with much lower interest rate. Make sure to include in your calculations and considerations all costs of refinancing like penalty payment.
  
  

When to Refinance Loans or Mortgages