If you are like many Americans today you have acquired a fair amount of unsecured debt that is now weighing heavily on you. As you are sitting there staring at a pile of bills you are probably wondering "should I refinance my mortgage'? Although the answer may not be clear at the time there are a few questions you can answer to help determine if refinancing your mortgage is a good financial move.
Reasons To Refinance
Adjustable Mortgage: If you have an adjustable rate mortgage then by all means you need to refinance quickly to avoid the potential problems these loans can cause financially. As property values across the nation plummet people in adjustable mortgages face the possibility of not being able to refinance a mortgage that gets more expensive every month.
Reduce Monthly Debt Load: If your credit card and other unsecured bills are hard to pay every month and causing you financial difficulties it may be in you best interest to refinance. Keep in mind though that you will be rolling unsecured debt into your mortgage. Because of this you should only refinance if you are lowering your monthly bills. Do not refinance just for the convenience of having all your bills wrapped into one payment.
Shorten Length of Mortgage: If interest rates allow it you maybe able to refinance a mortgage for a lower term. This will allow you to pay down you loan faster and also build equity faster. Depending on your current interest rate you maybe able to do this without raising your payment to much.If you plan on moving or retiring soon switching to a lower term mortgage maybe a good option for you
Refinancing your mortgage is a serious financial decision that should not be done harshly or without planning. And never use a mortgage broker who tries to talk you into refinancing with strong arm tactics. Instead seek the advice of a professional that can listen to your plans and guide you in the right direction.
Article Source: http://EzineArticles.com/1094707
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