You may want to refinance your home when you need cash for an event in your life. The interest on your mortgage may be tax deductible and therefore a good way to borrow.

The other reason to refinance would be to save money on the overall cost of your loan. You can save money by getting a lower rate or changing the amount of time you repay the loan in. Calculate the cost of getting a loan (points, closing costs plus the payments over the time of the loan). If these add up to less than staying in your current loan program, then it may be time to refinance. Make sure to ask if there is a prepayment penalty for refinancing. Perhaps you have some money to pay off a part of your loan. Your Lender may agree to recast the loan or refinance it so that the principal amount is less. Or perhaps you can afford a larger monthly payment and can afford to shorten the term of the loan, paying more per month but for fewer months. This will decrease the overall cost of the loan.

It may not be the right time to refinance. If your income has changed significantly since you got your first mortgage or if other factors have negatively effected your financial position, you may want to wait to refinance. Lately, declining home values have been a concern for lenders and the amount of your mortgage may be more than they are willing to give in today's economic environment.

The professionals at Walden Mortgage will help you to decide if refinancing fits your personal goals. If you do decide to refinance, we will also help you choose the best program and the best Lender. This is a free service.