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 For numerous people, the ability to refinance your home may scale down daily expenses and really improve credit all at one time. Contrary to what you might think, refinancing is still a smart choice for many homeowners. Find Out if it's a sound idea to refinance your home with this fast quiz:

   1. Are the current mortgage interest rates at least 1 point less than your present mortgage interest? Considering a home refinance might make sense with mortgage refinance rates. If interest rates are lower now by 1 points or more than when you purchased your home, you should emphatically look into a home refinance.

   2. Do you currently have an variable rate mortgage, negative amortization or interest only loan that is due to readjust or which isn't building equity? If so, today's historically low mortgage interest rates make it a superb time to refinance home mortgage loan and lock in low rates on a standard mortgage refinance loan with a fixed interest rate.

   3. Do you have at least 20 percent or more equity in your house? If so, you might gain from refinancing by reducing or doing away with the Private Mortgage Insurance (PMI) that you are paying each month. PMI is a type of insurance policy that is demanded in many loans where the buyer didn't make a down payment of 20% or more. In exchange for less money down, PMI provides additional insurance to lenders in the event of a default. But if you now owe 80% or less on your mortgage, you may be able to drop the PMI and that can cut down monthly payments by $50 to $200 or more.

   4. Is your debt to income proportion nearing the maximum? If you refinance your home, you may in reality improve your credit score by freeing up additional income and lowering the minimum monthly payment amounts of your basic bills. By keeping a solid credit score and low debt to income ratio, you will often qualify for lower interest rates on everything from credit cards to insurance, making this a sound strategic move toward lowering all of your monthly bills at one time.

   5. Do you need to pay for a large one-time out of pocket expense like major medical bills or college tuition? If so, it is oftentimes more affordable to get out money when you refinance your house instead than securing additional loans. Just keep in mind, you could be refinancing for up to 30 years so the total cost may be substantially more in the long run. Take time to calculate the cost versus savings for yourself before making a final determination.

      If you answered "yes" to some of the above questions then you might benefit from speaking to a mortgage broker or lender to refinance your home. It could easily save hundreds of dollars per month. Contact Louis Vela if you are considering refinancing to go over your mortgage financing options.