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No one will deny that the past year has been challenging in the mortgage industry. Refinancing has become a much harder task than it was in days gone by. New rules leave less flexibility, but along with the bad news, comes some good news too. Interest rates are at historic lows which can mean a lot more money in the pocket of homeowners who have a higher interest rate. The rule of thumb in the 1980’s was to refinance when you could reduce your mortgage by two percentage points. Today, however, you should consider refinancing whenever rates have declined since you took out your loan.

Adjustable Rate Mortgages came into the public eye the past 10 years, and it allowed many people to become homeowners. However, as the rates adjusted it caught many off guard with higher than expected payment rates. The need to refinance to a fixed mortgage rate has never been higher.

5 reasons to refinance:

     · Get a lower interest rate

     · Lower mortgage payments

     · Pay off debt

     · Remodel/update your home

     · Pay for college

You can add your own reasons to consider refinancing, but when used wisely, this option can give you a new lease on life. The reasons for going through refinancing are varied and personal, and you are the best judge to know when it’s the right option for you.