Now is still a good time to refinance you mortgage, with interest rates still at all time lows,

and the likelihood that rates will go up soon. There are several reasons to refinance.

• Lower Your Mortgage Rate. A common reason for homeowners to refinance is simply to lower their mortgage rate.
• Shorten the Term of Your Loan.
• Consolidate Debts.
• Cash Out.
• Go from an Adjustable Rate Mortgage to a Fixed Rate.

There are also things to consider. There are refinancing programs out there with no closing costs. While that option may be tempting, typically those programs come with a slightly higher interest rate. Over the life of your mortgage, you could pay thousands more in interests.

You also might have the option of lengthening the term of your loan. This probably will make your monthly payment lower. That might be OK for the short term, but if you are going to stay in the house a while, you will pay more money in interest over the life of the loan.

You might have the option of having less than 20% equity in your house after you refinance. It might be nice to have the extra cash in your hand. But keep in mind in your equity is less than 20%, you may be required to carry PMI insurance. For a conventional mortgage, you can expect to pay a PMI premium between 0.3% and 1.5% of the loan amount. The premiums are tacked directly on to your payment. The unnecessary cost of the PMI insurance will reduce the benefit of refinancing your loan.

You should discuss your plans with Ruth Schoenherr. Ruth is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.