Refinancing my primary residence

Refinancing has been a very popular thing to do over the past decade or so. Consumers are realizing the power of their mortgage and the advantages that a mortgage can provide. By refinancing you can: help with end of the year tax savings, save in outgoing monthly expenses, lower your current interest rate, lock into a fixed interest rate, lower your monthly payments, consolidate debt, and much, much more.

Many people consider refinancing their primary residence when they have children going away to college. By refinancing their home consumers can free up money to assist their child with college tuition bills or they can just take cash out of the equity in their home and use that to pay for their child's college costs. Either way, refinancing makes sense and chances are you will gain a tax deduction as well on the additional mortgage interest from refinancing.

Refinacing your current mortgage allows you to tap into the cash reserve that you may need from time to time. It is important however when you think about refinancing that you always limit the cash you take out of your home and keep adequate equity in your home. It is never advisable to take more than you absolutely need. Keep your equity in your home and only use it wisely. College costs are great uses of your equity.

One of the most popular reasons to refinance today is to lower your mortgage payment. Refinancing to lower your payments in a market with rising rates can be difficult, however there are options available which allow you to lock in a fixed rate for several years (up to 30) and get an option to amke a minimum payment as low as 1%.

Your mortgage professional can help you devise a plan for your refinance. Think about how long you plan on residing in your current home, any major purchases or expense you may incur in the coming year or two, and if any future income changes lay ahead.

» DISCLAIMER: The information contained in this article on 'Refinancing my primary residence' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.