Many homeowners choose to access the equity in their homes to receive cash for home improvements, pay for college tuition, buy a new car or pay for other high priced purchases. Additionally, there are a number of other benefits that refinancing can offer.

1. Lowering your current rate- Refinancing to secure a lower interest rate has become very popular in recent years with historically low interest rates that will save thousands if not hundreds of thousands over the term of a loan. 

2. Shortening the term of a loan- By shortening the term of a loan, similar to the outcome of lowering your current rate as explained above, you’ll save thousands over the term of a loan. Paying off your mortgage years sooner than initially expected will free up cash earlier on in life. 

3. Lower monthly payments- Refinancing may give you lower monthly payments which will free up more cash for you to have on hand monthly. Lowering your monthly payment typically depends on your current interest rate and the amount of equity in your home. 

4. Consolidating debt- Refinancing to pay off other debt like auto loans, credit cards, hospital bills, etc has become more popular in recent years. Rather than making payments to many accounts, homeowners may choose to consolidate their debt to their new loan to save time and money especially if the interest rate for the refinance loan is lower than their other debt loans.