Mainly, homeowners refinance to save money, to earn money (through equity), or obtain money (through “cashing-out”). Generally such loans are advisable for homeowners planning to remain in their home for ten more years, or else they will not have felt the reward of the home refinancing process. Also, refinancing is not advised if interest rates have not dropped at least 2% since the first home loan was closed.

Homeowners refinance for many reasons:

• To take advantage of low interest rates
• To change to a fixed rate mortgage
• To shorten a mortgage term in order to build equity more quickly
• To pay for tuition or home improvement

Whether because of less than perfect credit or inexperience many homeowners find themselves stuck with mortgages that are not right for them or their needs. For example, a homeowner who had only intended on remaining at his or her home for five years but has now decided to live there indefinitely. This homeowner may have taken an adjustable rate mortgage with a thirty year term and now realizes that a fixed rate mortgage with a shorter term would save thousands of dollars. This is the perfect situation for the homeowner to consider refinancing.

The needs and priorities of a family change rapidly over the span of a few years. What was important when you closed your first mortgage is not as important now. Perhaps your credit has improved or interest rates have dropped. Perhaps one of your children is preparing for college and you are searching for ways to pay tuition. In these situations many homeowners look into refinancing their homes. Apply online to day to refinance your home.