Mortgage Refinancing Can Still be a Good Deal

Just because interest rates are rising doesn't mean you should forget refinancing your mortgage. There are many reasons for refinancing beyond getting a better interest rate. If you are considering refinancing your mortgage here is what you need to maximize your benefits from refinancing.

Everyone refinances their mortgage sooner or later. In fact, the average American refinances their home every four or five years. Interest rates are rising; however, they are still at historically low levels and have not gone up enough to discourage refinancing for a variety of reasons.

Cash-out mortgage refinancing is a popular way to tap the equity of your home while avoiding the expense of home equity loans. By choosing a mortgage with a longer term length you can lower your monthly payment in the process. Refinancing to a fixed interest rate mortgage can give you the cash you need and peace of mind during economic uncertainty.

If you are a homeowner that already has a second mortgage or a home equity loan with a variable interest rate you might consider refinancing before rising interest rates take a bite out of your cash flow. Many home equity loans come with variable interest rates; if you are nearing the end of your introductory period the lender will soon adjust your home equity loan's interest rate and you can expect your payments to go up.

Refinancing has many advantages. You can consolidate high interest debt, cash out equity for repairs or renovations, or lower your monthly payment amount. The advantage of refinancing your mortgage does not mean refinancing is easy. There are a number of mistakes homeowners make when refinancing their loans that prevent them from realizing any savings and actually cost them thousands of dollars in finance charges.

You can learn how to avoid making these costly mortgage mistakes by registering for a free mortgage guidebook. You will learn how to shop for the best lender, how to protect your credit score, and how to avoid overpaying for closing costs.

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