Home Mortgage - Reasons To Refinance Your House

Refinancing can have other financial benefits besides lowering rates. Locking in rates can protect you from higher rates, saving you money on future interest costs. You can also change your ARM for better caps to prevent huge monthly increases. Consolidating your bills with your equity saves on credit card rates while providing a tax advantage.

Protection From Future Rate Hikes

An adjustable rate mortgage (ARM) provides the lowest rates for home buyers, but these rates can increase. Monthly payments can jump a couple of hundred dollars a month depending on market rates and loan caps.

For those planning to stay in their home for more than seven years, it is a good idea to refinance to a fixed-rate mortgage if rates look likely to rise. Fixed-rate mortgages offer security from future payment hikes, but with slightly higher rates than ARMs.

Trading In For Better Caps

Many ARMs offer initial low set rates that can change after a couple of years. Jumps in payments can be surprising, especially if you have less than favorable caps. Caps set limits on how much and how often your payments can increase.

Loan Type:

Type of Home:

Credit Rating:

Property State:

Select a Loan Type Refinance Mortgage Home Equity Loan/Line Purchase Home Debt Consolidation

Select Home Type Primary Home Secondary Home Investment Property

Excellent Good Fair Poor

Select Property State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming