Reasons to Refinance Your Pennsylvania Home

By AJ Fanter
Local Lender Columnist
Jun 12, 2006
There are three primary reasons for considering a refi on your Pennsylvania home - reducing your monthly mortgage payment, reducing the length of your mortgage or putting the equity you've earned in your home to work for you.

Refi to Reduce Your Pennsylvania Mortgage Payments

If you need additional cash on a monthly basis, and you currently have a high interest rate, you should consider refinancing your Pennsylvania home. By opting to refi your high interest mortgage, you can potentially save yourself hundreds of dollars each month. Even a difference of $100 can lead to a $36,000 savings over the life of your loan.

Refi To Rehab, Rest Easy or Retire Early!

One of the most popular reasons people choose to refi their Pennsylvania mortgage is so they can access the equity they've earned in their home. Many people use this equity to re-invest it in the home itself via home improvements. People also use this money to pay off high-interest credit card debt or to support a broader retirement planning strategy.

Refi to Reduce the Length of your Mortgage

Reducing the length of your mortgage from 30 years to 20, 15 or 10 years can save you a substantial amount of money over the life of the loan. By refinancing your home mortgage you could save yourself a substantial amount of cash in the long run because you'll be paying off your home faster!

Is a Refi Right for You?

Before you call your lender and begin the refi process, it's a good idea to run the numbers using one of the many mortgage calculators you can find online.

Sources:
A Consumer's Guide to Mortgage Refinancings, GSA

About the Author
AJ Fanter is a freelance writer based in Reno, NV.