Reasons to Refinance
Here are some of the top reasons to refinance. You can see which is right for your particular situation.

• Lower your monthly payments: This is the primary reason people refinance. Refinancing at a lower interest rate will reduce your monthly mortgage payments, giving you more cash in your pocket every month.
  
• Change the term (length) of the loan: If long terms savings is important to you, then refinancing from a 30-year to a 15-year loan will save you thousands of dollars during the life of the loan. In addition, it will allow you to build equity in your home at a faster rate.
  
• Convert an ARM to a fixed rate (or vice versa): Perhaps you currently have an ARM loan because it allowed you to afford your home due to its lower interest rate. As fixed rate interest rates fall, many people refinance their current ARM loan to a fixed rate loan for the security of stable payments for the life of the loan.
  If you currently have a 30 year fixed loan, but do not plan to stay after a few years, there is no reason to pay the higher interest rates of a fixed rate loan. Converting from a fixed rate loan to an ARM loan will more than likely lower your monthly payments.
  
• Get Cash: You may be able to refinance to take cash out by borrowing against equity in your home. You can use the cash for anyrthing you like – from paying for home improvements, to paying for a vacation, to paying college to tuition, to even buying a new car. Whereas interest on credit cards and car loans are not tax deductable, home loan interest usually is. Therefore, if you are considering a major purchase, borrowing against your equity may be a good option for you*.
  
• Debt Consolidation: You can refinace in order to pay of credit card debts and car loans. Credit card interest is usually very high and compounded, whereas interest on a home loan is simple, you can save a significant amount of money by paying off expensive credit card debt through the equity in your home. In addition, unlike credit card interest, home loan interest is usually tax deductable*.
  
• Eliminate mortgage insurance (PMI): If your loan to lavue (LTV) ratio on your original home loan was more than 80%, chances are you were required to carry Private Mortgage Insurnace (PMI). If that’s your case, refinancing to elimated PMI may be a good option for you. Countywide Financial offers a variety of special loan programs which will elimate PMI altogether.
  
• Combining Mortgage Loans: Save time and energy by refinancing to combine a first and second mortgage into one payment to one lender.

*it is recommended you consult your CPA or Financial Planner to discuss your unique tax situation.

Things To Consider Before You Refinance:
Before you refinance, be sure to consider all the costs of refinancing. Here are some of the most common costs to keep in mind:

• Closing costs. These are costs and other expenses directly related to processing and approving your application. These costs may include fees for a credit report, escrow, processing, underwriting, title search, title insurance, appraisal and recording a new mortgage lien. If you are refinancing to reduce your monthly payments, a common rule of thumb is to recover your closing costs within two years (ex: if your closing costs are $2,000. your monthly savings after two years should at least equal $2,000). Any reputable lender will provide you with a “Good Faith Estimate” which is an estimate of closing costs based on your loan amount. Whether you inquire in person, over the phone, or online, Countywide Financial will provide these estimates to you.
  
• Application costs. Keep in mind that some lenders may charge an application fee to refinance. However at Countywide Financial, we believe you should not have to pay to apply for a loan with us.