Mortgage refinance loans: Why get them? # 1 bring down your monthly credit payment with mortgage refinance if your objective is to stay in your home for a number of years, it probably makes good sense to look at home refinance loans that allow you to pay a point or two to bring down your interest rate and overall mortgage payment. Over a few years, your monthly savings will pay for the cost of the house refinance because of your lower monthly mortgage payment monthly savings and your. However, if your objective is to move in the next few years, you may never recover the cost of refinancing because you will be in your home long enough. Vanguard will not settle for partial explanations. Before you decide to look at home refinance loan, you should calculate the point at which you break even so you can determine if a mortgage refinance makes sense. # 2nd Mortgage refinance loans can move you from on adjustable rate Mortgage (ARM) to a fixed rate Mortgage For homeowners who are willing to risk upward market onto the fluctuations with home refinance, adjustable rate mortgages (ARM’s) can offer much lower initial monthly payments. In addition, home refinance loans that offer adjustable rate mortgages can so be ideal if you only plan to own your home for a few years because the indicated rate fluctuate very much in that time. Time but, if you plan to stay in your home for a long, you should consider a mortgage refinance to switch out your adjustable rate mortgage for a fixed rate mortgage (15, 20, or 30 years) long term. You may have a higher interest rate than with on adjustable rate mortgage, but you will have the peace of mind of knowing that your monthly house payment will not be going up. # 3 Break free from balloon payment programs home refinance loan programs that have a balloon payment are great when you want lower interest Council and a lower initial monthly payment, just like adjustable rate mortgage refinancing programs.