Details: Refinancing your loan allows you to take advantage of improvements in your credit or drops in interest rates. Finding out if it is a good time to refinance is free. A popular option when refinancing is cash out refinance.

When you refinance you can make a small increase in your loan amount and get the money as cash. Another benefit of refinancing is consolidating other high interest debts in your new home loan to save on interest expenses. Many homeowners with 15 year loans decide to refinance to a longer term of 30 or 45 years to lower monthly payments.

The advantage of consolidating your debts into your home mortgage with a refinance is that your interest payments may not only be lower, they are also tax deductible. If you are on an adjustable rate mortgage, refinancing is also an opportunity to lock in at today's rates on a fixed rate mortgage. If you stay in your home more than three years and obtain a rate reduction of more than 1.5% it is likely in your interest to refinance.