Refinancing

There are many reasons to refinance your mortgage. Refinancing is often used to lower your interest rate and/or monthly payment. Other common reasons to refinance include shortening or lengthening the term of your mortgage, setting up or eliminating escrow accounts, eliminating mortgage insurance (MI), paying off a balloon payment, converting an adjustable rate loan to a fixed rate loan or to extract cash equity in your home (cash out/home equity loan). A few reasons for cashing out include: home improvements, an education fund, and consolidating debt. The appraisal fee is the only out of pocket expense the vast majority of the time.