If you own a home and have equity in it, it might be time to refinance your home mortgage. Homeowners usually have various reasons for considering a refinance on their home loan. They are:
Often, as people work through their careers and continue to make more money they are able to pay all their bills on time and thus increase their credit score. With this increase in credit comes the ability to procure loans at lower rates, and therefore many people refinance with their mortgage companies for this reason.
The refinance process is relatively easy. You complete the application online, provide the necessary documents, and get an appraisal that will determine the current value of your home. The ideal situation and the best rate, will come by not exceeding 80% of the value of your home with a new loan. However, you can go up to 97.5% with an FHA home loan. FHA is not an actual lender but they insure the loan payments will be made to your lender and thus there is a charge for the FHA insurance. Sometimes, this is offset my a reduced interest rate the lender will give you because the loan is insured. Refinance.