- Many refinances lead to lower interest rates and monthly payments.
- You could avoid rising interest rates by going from an adjustable rate mortgage to a fixed rate mortgage.
- There is refinance option that allows you to consolidate debt into a single home loan, which gives you a better interest rate than credit cards or personal loans.
- You might be able to extend or shorten the term of your loan, according to your needs.
- The closing costs and refinance fees can be significant; it may cost the same or more than when you got your first mortgage.
- The interest rate may rise, going from a fixed to an adjustable rate mortgage.
- Taking out another loan on your home equity puts you in greater debt.
- By taking a cash out you would be lowering the equity, which may lead to you having to pay private mortgage insurance on your home.
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