Most homeowners will consider refinancing their mortgage at least one time throughout the lifespan of their home. Refinancing your mortage allows you to pay off your previous loan by applying for one that will provide better financial benefits. While not every situation is the same, there are any number of reasons why this may be advantageous to you, but here are the most common ones.

Check your interest rate
The top reason homeowners refinance is to gain a lower interest rate. This saves money in the long run, decreases your monthly payment, and allows you to start building equity in your home sooner.

Shortening the loan's term
There is a chance you may be able to get a shorter loand term with almost no change to your monthly payment is interest rates are decreasing.

Switching from and adjustable rate to a fixed one
If you chose an adjustable rate mortage when you first signed because of good introductory rates you may have already found out that the rate decreases over the years. By switching to a fixed rate loan when interest rates are low you can gain protection from future market changes.

Cash out your equity
If there is a big purchase in your future - like a wedding, or major expense - your best choice might be to use the equity you've already built up in your home in order to borrow money at a lower cost.

Improve your credit
Your credit score has a big impact on your purchasing power, and even if interest rates in the market have not changed an improved credit score may be able to reduce your mortgage rate.

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