Before I decide to refinance my mortgage, what should I consider when refinancing? 

If you are considering refinancing your home, there are several factors you should think about before making your decision. These factors include the interest rate on your current mortgage, the current market interest rate, how long you plan to live in your current home, and whether or not you need money for other things (such as home improvement, a new car, or paying off credit cards).

Things to consider before refinancing:

1. The interest rate you are paying.

Consider the interest rate you are now paying before refinancing. Compare it against the current interest rate to see how much you would save by mortgage refinancing. Use our free mortgage calculator to determine your new monthly payments.  

2. The current interest rate.

Check the current interest rate. To get the benefits of a lower rate, you may have to pay fees associated with the loan, unless your lender is doing a no fee loan.  Before committing to a refinance, be sure you have discussed the  fee options  with your loan officer.  

3. How long you will live in your house.

Check the current interest rate. To get the benefits of a lower rate, you may have to pay fees associated with the loan, unless your lender is doing a no fee loan.  Before committing to a refinance, be sure you have discussed the  fee options with your loan officer.

4. Consolidation.

If you have several outstanding bills, you may want to consider mortgage refinancing your home and in turn, consolidating and paying off your other debts. If you have equity in your home (even if you don't), you may be able to access that equity through a "cash out" refinance, or a wide variety of other loan programs. You could choose to apply that equity to a debt consolidation plan, a new car or home improvements.