Reasons to refinance your mortgage

Since there seems to be a trend of rising interest rates, you may be wondering if you should refinance your home mortgage. There are several reasons why this might make a lot of sense. Here are a few:

1. If your current jumbo loan or the combination of your first and second loans is $424,100 or less, you can refinance into a regular conventional loan. The conforming loan limit was increased a few months ago to $424,100.
2. If you have a VA home loan, you can refinance without an appraisal. The VA home loan interest rates are still very attractive.
3. If you are a veteran and your current loan is not a VA home loan, you most likely will be able to refinance at a lower interest rate.
4. If your current loan is FHA, you may want to consider checking to see if you have enough equity in your home to refinance and eliminate the monthly private mortgage insurance.
5. If you want to pay off your loan in a shorter amount of years, you could refinance into a 15-year term loan.
6. If you need to reduce your total monthly debt, you could do a cash-out refinance and pay off other debts.
7. If your current loan is an adjustable rate mortgage, you should refinance into a fixed rate before rates rise too much. This is, of course, if you don't intend to move in the next few years.
8. If you would like to remodel or add on to your home, you could take a cash-out refinance to pay for the improvements.

JoAnn Moore is a licensed mortgage originator, NMLS #165477, for The Mortgage Market of Delaware LLC, Georgetown. For more information, call 302-855-1306 or 302-236-1229 or email MMODJoAnn@aol.com.