To Get a Better Interest Rate
Lowering your interest rates can decrease the amount your monthly payment as well as save you thousands over the life of your loan.
Get Rid of MIP
A Refinance is also a great way to remove MIP (Mortgage Insurance Premium) from your monthly payment on an FHA loan once you have reached 20 percent equity in your home.
This can be used for many purposes:
New Type of Loan
You may want switch from an adjustable rate mortgage to a fixed rate mortgage for added stability.
Pay Off Your Home Faster
Lowering your remaining loan term from 30 year to 15 or 20 year can be one of the best ways to save yourself thousands of dollars while achieving the dream of owning your home free and clear much sooner than you ever thought possible.
Not only do you pay your loan off much quicker, but depending on the program, 15 year rates can be significantly lower than 30 year rates.
If you are 62 or over and have equity in your home, you may be eligible for a reverse mortgage.