There are many reasons for refinancing a mortgage. You might want to stabilize your payments by changing from a variable to a fixed rate mortgage. Perhaps you have improved your credit score and qualify for a better mortgage with a better discount. Or maybe you want to refinance a home loan to pull out equity for home improvements, investments, college expenses, or high-interest debt consolidation.
Home equity is an easy and affordable way to access money you have accumulated in your home, especially if you have a good first mortgage in place. If you plan to remove equity from your home, you should be aware of the benefits and possible risks. Talk to a licensed mortgage professional and financial planner to discuss how you can make home equity work for you.