Shorten the term of the loan.

Depending on when you originally received financing, refinancing to a 15-year mortgage can be a savvy financial planning strategy. This would mean paying off your loan earlier and opening up cash flow for other purposes. Try our mortgage calculator to compare your current payment to what you could be paying.

Lower the interest rate.

If you purchased your home a few years ago, there is a good chance your interest rate is higher than what they are currently at now. You could be saving hundreds of dollars each year by lowering your interest rate and therefore your monthly payments. This will allow you to continue adding to your home’s equity but put some of the interest money back in your own pocket.

Move from an adjustable-rate mortgage to a fixed-rate mortgage.

Even if rates are low, they may not stay there very long. Rates are always changing! Now might be a good time to lock in a low rate and have some peace of mind knowing your low payment will stay the same for the remainder of the loan.

Refinance to cash out home equity.

Often borrowers choose this method to get cash out of their home’s equity to go towards purchasing an investment property, starting a business, paying for college or taking care of some other financial needs.