The Federal Reserve keeps raising interest rates hoping to offset inflation. Does this mean you should offset refinancing your mortgage? Not necessarily, there are still good reasons to refinance, and if you do you homework you can still find a great deal on your new mortgage. Here are several good reasons to refinance your mortgage in a declining economy. Cash out Equity You can save yourself a lot of money by consolidating your high interest debt using a home equity loan. Mortgage interest rates have gone up; however, they are still lower than most credit cards. If your credit card debt is nearly out of control there is no better time then the present to tame it. Remember that consolidating does not eliminate your debts; it simply levels the playing field when it comes to high finance charges and makes it easier for you to pay it off. Once you consolidate your credit card debt consider cutting up your cards so you dont land yourself in double debt. Lower Your Monthly Payment You can still lower your monthly payment when interest rates are rising by choosing a mortgage with a longer term length. If your budget is already stretched to the limit consider refinancing to lower your mortgage payment. If your current mortgage has a high interest rate you could still find a better deal by shopping and doing your homework. You can learn more about refinancing your mortgage and avoiding common mortgage mistakes by registering for a free mortgage guidebook. |
