A review on mortgage loans
First, determine your real reason for considering a refinance of your mortgage. People refinance their mortgage loans either to extend the term of the loan to decrease the amount of their monthly mortgage payments or to take advantage of a drop in interest rates. Debt consolidation is another major reason to refinance a mortgage. After all, why should you carry two separate mortgage loans (a first mortgage loan and a home equity loan) when you can combine their terms and interest rates into one single loan. Another popular reason to refinance a mortgage is to replace an adjustable rate mortgage (ARM) with one carrying a fixed interest rate.