Refinancing

Refinancing is often used to lower your interest rate. If rates have dropped since you last financed your home, you may want to consider refinancing. A "rate and term" refinance allows you to take advantage of lower rates. Or perhaps you want to refinance because you want to pay off a balloon payment, convert an adjustable rate loan to a fixed rate loan or extract cash equity in your home (cash out). A "cash-out" refi allows you to take cash out of your house - proceeds can be used to finance a home improvement, an education fund, or consolidating debt.

Another way to convert equity in your home to cash is a "home equity" loan.  A "home equity" loan is an alternative to refinancing if your home loan has a very low rate compared to current interest rates or if you have a prepayment penalty on your loan.

 

Managing Your Credit

   ♦      Your credit score helps lenders assess you as a borrower.

[Click Here for 5 tips for improving your credit score]

   ♦      For more information about credit cards and recent changes in laws governing the industry, click here.