As you know, each monthly mortgage payment you make helps you pay down the outstanding loan on your home. If the value of your home increases due to favorable housing markets, your home may be worth more than when you bought it. Through refinancing, you can free up some of the money you have paid off on your loan balance and access equity from the appreciation of your home value for other purposes. There are many reasons people take equity out, ranging from paying for a child’s college tuition to paying of debts that have non-tax-deductible interest costs (the interest on home loans is tax deductible). Other reasons include funding home improvement projects or buying a second vacation home.

Posted in: Some popular reasons to refinance include: