Not all mortgages are perfect the first time around. Whether you want to make a change to the loan's term, lower your interest rate or even change to a new type of loan, you don't have to be stuck with the first mortgage you signed. If you're constantly wondering, "Should I refinance my home?" here are some great reasons to consider refinancing a mortgage.

Lower Interest Rates

The interest rate that you secure for your mortgage depends greatly on when you purchase your home. If you buy when rates are high, for example, you'll end up paying more interest than you'd like over the years. The good news is that interest rates change over time, so when they're at a record low, you'll know when to refinance.

You can save thousands of dollars by refinancing to a lower interest rate. Keep in mind that home refinance does have related fees, but they should be less than what you'll save in interest payments. Be sure to shop around for the best refinance rates before signing any paperwork.

Mortgage Insurance Savings
The size of your down payment can affect your monthly payments significantly. If you have a down payment that's smaller than what's normally required, typically less than 20 percent of the home's sales price, lenders typically charge mortgage insurance so they can recoup their expenses.

Like loan interest rates, mortgage insurance rates also change over time. If you're paying a large chunk of mortgage insurance along with your loan payment each month, consider refinancing when the Federal Housing Administration drops mortgage rates.

Shorter Loan Terms
When you first mortgaged your home, a 30-year term might have sounded like a great idea. Even if you plan to live in your home for decades, though, a long loan term isn't always the most frugal choice. In fact, long loan terms mean you'll pay thousands more in interest over the course of the loan.

To find the best loan term, talk with experienced mortgage refinance professionals. Once they have a complete understanding of your financial obligations, income and home value, they can give you an informed answer to the question you've been asking: "Should I refinance my mortgage?"

Loan Type Conversions
If you shop around for mortgages, you'll quickly find you have several options. Adjustable-rate mortgages (ARMs) offer rates that adjust periodically, while fixed-rate mortgages don't change over time.

If you find that the interest rate associated with your ARM keeps climbing, you might consider locking in a low interest rate with a fixed-rate mortgage when possible. On the other hand, if rates keep dropping and appear they'll continue to do so, converting to an ARM might be a smart move.

Mortgages are a complex business, so even when you have all the facts, be sure to research and consult with the best refinance companies before making a decision. After all, your home is one of the biggest investments you'll make, and refinancing is a decision to take seriously.

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