Reason Why to Refinance Mortgage Home Loans
Reason Why to Refinance Mortgage Home LoansRefinance Mortgage - There are 2 main reasons why you should refinance a mortgage: A. Get a better interest rate B. Cash Out some monies from your home's equity value.

A. Interest Rate Years of Term Refinancing - Rate / term refinancing pays off one loan with the proceeds from the new loan, using the same property as collateral. This type of loan allows you to take advantage of lower interest rates or shorten the term of your mortgage to build equity faster.

The Rate / term refinancing refers to strategies that enbables you to switch from an ARM to a fixed home loan. Example: 1) If you have an ARM that is set to adjust in a few months, you can refinance into a fixed-rate mortgage. 2) If you have a fixed-rate loan and you're moving in 2 or 3 years, you can refinance into a much lower interest rate ARM.

B. Cash-out refinancing - Cash-out refinancing leaves you with additional cash above the amount needed to pay off your existing mortgage, closing costs, points and any mortgage liens. You may use the additional cash for any purpose.
 
About Cashing Out By Refinancing Mortgage

About Cashing Out Refinancing Mortgage Reuters - Many U.S. homeowners continue to take cash out of their homes even as mortgage rates climb and home sales slip, helping to brace the economy, economists said. This year, Americans who refinance their mortgages are expected to draw $257 billion of wealth out of their homes, according to mortgage finance giant Freddie Mac.

That's $13 billion more than the refinancing cash-out seen in 2005 - the hottest year of the recent housing boom.