Mortgage The basics
If you decide to refinance with another adjustable rate mortgage, be completely aware of what is expected of you in terms of rate resets and balloon payments. If the rates for fixed rate loans are lower overall, refinancing to a fixed rate mortgage would make more sense over the long term. Do your financial homework. Another reason homeowners choose mortgage refinancing as a strategy is to pay off consumer debt such as credit card balances and home improvement loans. Interest on consumer debt is typically charged at a higher rate and is not tax deductible.