Mortgage Refinancing
Consider refinancing your mortgage if you can get a rate that is at least one percentage point lower than your existing mortgage rate and plan to keep the new mortgage for several years or more. Ask an accountant to calculate precisely how much your new mortgage (including up-front fees) will cost and whether, in the long run, it will cost less than your current mortgage.
Eliminate Unnecessary Insurance. If the down payment on your house was less than 20% of its appraised value, you are most likely paying private mortgage insurance (PMI). For example, suppose you bought an $80,000 home a few years ago and put $10,000 down, leaving $70,000 on a mortgage. If the house today would be apprised at $95,000 and you have paid the $70,000 mortgage down to $68,000, refinancing (assuming the interest rate and refinancing changes are favorable) can save the need for PMI since the difference between the mortgage ($68K) and the value ($98K) is now more than 20%.