If one or more of the above describes you, you would most likely benefit from refinancing. However, if are planning on moving in the next few years, you will not be able to fully reap the rewards of refinancing and another type of loan would make more sense.

Refinancing is simply the acquisition of a second mortgage that is used to repay the first mortgage. During this process, you can borrow against your home equity to increase the amount of the loan over and above that of your first mortgage. This is called a cash out refinance and gives you the funds to pay for home improvement, college tuition, a brand new car or any other major purchase. Depending on the use of the money left over after refinancing, the repayment may be tax deductible.

Homeowners with FHA insured loans are able to “Streamline Refinance,” and adjust their mortgage interest rates at no cost.

Refinancing is a great option for homeowners who:

• Have a high interest loan
• Have an adjustable rate mortgage
• Would like to invest in home improvement
• Need to pay for college tuition
• Are in need of debt consolidation
• Want to make a major purchase but do not have the funds