Should You Refinance Your Home?

If you haven't revisited your?mortgage situation recently, now might be the time to refinance your home.

A couple of years ago, I finally revisited the terms of my loan. I knew, in the back of my mind, that I could do much better by refinancing. However, I was too lazy to get around to it. When I decided to get serious about it, though, I immediately saw the good effects. If you haven't reviewed your mortgage loan recently, you might be surprised to learn that it could benefit you to refinance your home.

Money House

Low, Low Mortgage Interest Rates

Mortgage interest rates remain fairly low. You can visit almost any online aggregator and see that you can get a good deal on your home loan. Sites like LowVARates.com?provide specialized information for veterans looking for a VA loan?refinance. On top of that, it's worth noting that the?HARP program, which offers responsible homeowners the chance to streamline the refinancing process, is available through the end of 2015. My own refinance was done through HARP, and it was surprisingly easy. Even if you don't refinance your home through a program like HARP or through a VA program, there are still low mortgage interest rates for you take advantage of at many institutions.

Refinance Your Home and Reap Financial Benefits

Refinancing offers you the chance to reap a number of financial benefits. When I refinanced my home, I did it mainly to free up some cash to boost my investments. I am heavily involved with dollar-cost averaging, and I wanted an extra $300 per month to put toward my long-term wealth-building goals.

There are other ways to financially benefit when you refinance your home. Here are some ways that refinancing can help you:

  • Reduce total interest paid: Rather than paying more money to others for the privilege of borrowing, you can reduce the total amount you pay over time with a lower interest rate. You could save tens of thousands of dollars over the life of your loan — and use that money however you want.
  • Better cash flow: Maybe you are concerned about how your finances are each month.?When you refinance your home, you have the chance to improve your cash flow. Cash flow is more important than income, and if you can arrange matters to improve your cash flow, you will be in a better place.
  • Pay off your home faster: While I'm not someone who is overly concerned about paying of low-interest, tax-deductible debt early, I know that many people derive satisfaction from paying off their debt as quickly as faster. If total debt freedom is a priority for your finances, it makes sense to tackle your mortgage as efficiently as possible. Refinancing can help you do that. Refinance to a lower rate and a shorter term, and pay off your obligation that much faster.

Carefully consider your situation and your financial goals. Then review your mortgage.?Figure out if you could better meet your short-term and long-term goals if you were able to refinance your home. You might be surprised to discover how effective refinancing can be.

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