Q&A: refinancing your mortgage?

Question by nluv4ever31: refinancing your mortgage?
is this a bad thing to do? how long should you wait before refinancing? and how does it lower your payment?

Best answer:

Answer by Goldenbearloan.com
No not at all? I am not sure of your scenario but lets look at a couple of angles.

Orignally you financed 100% of the home. If the equity gained from the time your purchased to today is over the amount of the 2nd than you can refianance rate/term to cut out the 2nd and just go to one payment.

If you have cash left over and under 80% of your loan to value you can cash out and use the money on paying off debt or additions to your home. Maybe a spa, trip to europe/carribean.

Considerations:
Do you have a prepayment penalty? If you dont know than please call your lender to find out.

Lowering payment?
100% to 80% one loan yes will lower your payment also you can use some of equity to buy down your rate if you wish.

Know better? Leave your own answer in the comments!