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When is it appropriate to refinance?
Homeowners consider refinancing in order to gain some benefit, generally lower payments, lower interest or an increase of cash to meet some current need such as necessary home improvements. In order to decide when it is appropriate to refinance, a homeowner should evaluate the possible benefits and concerns. 

Depending on the circumstances there are a variety of possible benefits, including:

Lower monthly payments

Lower interest rates

  • Lower debt load
    A lower debt load may simply offer less monthly stress and a greater peace of mind. But it may also allow for more of your money to go into investments or retirement funds. A lower mortgage balance may qualify you to drop your Private Mortgage Insurance. For future loans, an increase in equity may provide more flexibility in terms and options (such as rolling equity for a down payment).

  • Tax breaks on home improvements
    Interest on second mortgages used for home improvements is generally tax deductible. Before deciding about a home improvement loan, a homeowner should consult with their accountant to determine the best tax advantages.

  • Restructured debt
    There are several ways in which restructuring debt may be advantageous.
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  • Needed home improvements, cash or other priority items
    Refinancing can be the answer to funding those expenses that don't fit into the on-going or monthly payment cycle. You can use your equity as the means to obtain funding, often without increasing your monthly payment, sometimes even reducing the payment and the interest.


    Your mortgage broker can help you weigh these factors and determine if, when and what kind of refinancing might be best for you. Call 630-854-3459 for more information
  • Contact Info

    Patty Harrison
    patty@smartmtgs.net

    ph. 630-854-3459
    fx. 630-904-1010
    Cell: 630-854-3459
    Smart Mortgage - 4003 Plainfield/Naperville Rd. #201 , Naperville, IL 60564
    NMLS #230234/Company #222269 / Illinois Residential License #4870