• Can my loan be sold after I get it and how do I know who the new lender is?
• Should I Refinance?
• What Is A Rate Lock?
• What Happens If Rates Drop After You Lock?
• What Is PMI? How Do I Get Rid Of It?
• What Is The Difference between Pre-Qualifying and Pre-Approval?
• Which Loan Is Right For Me?
• Why Do Mortgage Rates Change?
• So Why Do Rates Change?

There are many reasons why people refinance but the obvious reason is to SAVE MONEY.  Saving money through refinance can be accomplished in various ways because every borrower has different reasons why they want to save money.   Following are some of the most common reasons:

1. To obtain a lower interest rate, which should reduce your payment?
2. To shorten the term like 15 or 20 years.  Depending on your current interest rate, your payment may be lower, it may remain the same, or it may go up very little or a lot.  Irregardless, you save money because over the life of the shorter term, your total payments will be reduced.
3. To consolidate debt.  If you refinance to consolidate all debt, your new payment may be higher than your current payment but it should be lower when you calculate the monthly payments of all debt that you paid off with the refinance.
4. To do a home improvement.  Some homeowners will refinance to take out cash for home improvements such as remodel and room additions.

When you ask yourself "Should I Refinance?" always look at the cost involved versus the savings depending on your reason.  If it is a straight refinance to lower your rate, calculate the costs versus a no fee refinance and pay a slightly higher interest rate.  You might be surprised at the difference in the payment versus the amount of money you save by not paying the costs.