What are the Best Reasons to Refinance a Mortgage?

From shrinking your monthly payment to paying off your home sooner, refinancing can help you achieve your financial goals. Here are some reasons why it might be a smart move.

If interest rates have dropped since you first mortgaged your home, or if you shorten your loan term, say, from 30 years to 15 years, refinancing could save you money over the life of your loan. You could also use the equity in your home to free up funds for things like a home renovation with a cash out refi. And refinancing to change your adjustable-rate mortgage to a fixed-rate could protect you from future rate hikes.

Before you decide to refinance, be sure to compare offers, fees, and closing costs—then calculate your break-even point. If everything lines up, refi may be right for you!