Refinance

Going into a short-term mortgage can save on interest costs. When experiencing payment hardships or a change to circumstance moving from a 15 Year Fixed to a longer term 20, 25, or 30 Year Fixed mortgage can be a better idea allowing monthly savings and giving space.

With an Adjustable Rate Mortgage, worrying about a future rise in rates can be solved by moving to a Fixed-Rate Mortgage (FRM). Great for a long-term mortgage the FRM rates are usually higher than ARM but gives peace of mind over changing rates.

Nearing an adjustment period with an ARM loan without a long-term commitment to the loan can allow movement into another ARM saving interest costs. With 5 and 7 year ARM pricing at least 1% lower than the fixed rate it makes sense to move to an ARM from another ARM saving monthly payment and interest costs.

When home prices go up or principal payments are paid down, with 20% equity in the house or extra cash being brought in it may be time get rid of that pesky mortgage insurance.

When home prices go up or principal payments are paid down, with a FHA loan it can change to a conventional in order to reduce MI.

With big expenses or major purchases looming, doing a cash-out refinance is a great idea. This will require equity and include a higher rate than regular refinance but may still be much less expensive than borrowing from somewhere else or using retirement savings.

With bad credit when getting the loan or having a higher rate refinancing will help lower the rate.