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Looking for a great mortgage refinance rate? Do you think that you deserve a lower interest rate or lower mortgage payment? If that sounds like you, it may be time to consider refinancing your loan. Let’s take a look at why you may want to refinance your current mortgage.

1. You Want to Secure a Fixed-Rate 

A variable rate mortgage may be beneficial when interest rates are low or if you don’t think that you will live in your home for more than five years. However, if rates start going up or you think you will live in your home past the time when your loan rate resets, refinancing to a fixed-rate may be the best thing for you.

2. You Want a Conventional Loan

Government-backed loans are great when you want to buy a home without a large down payment. However, they also come with mortgage insurance and a higher interest rate. Refinancing to a conventional loan can get you the lower rate that you want and get rid of the mortgage insurance at the same time. Depending on the terms of your FHA, VA or USDA loan, it may be possible to get a credit for mortgage insurance already paid. 

3. You Want to Cash Out Equity

When you refinance your home loan, it may be possible to cash out equity in the home. This can make it easier to pay off other debt or consolidate your debt at a lower interest rate. For those who have good enough credit, it may be possible to use your equity as a revolving credit account. This means that your equity will always be available in a more liquid form. 

The mortgage refinance rate is often slightly lower than the rate for new buyers. Therefore, it may make refinancing your loan a more attractive option because it may lower your monthly payment in addition to all the other benefits gained through a refinance.

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Disclosure:  today’s post is a guest post.