 TITLE: When Can I Refinance My Home? CONTENT: When Is It a Good Idea to Refinance Quickly?\n--------------------------------------------\nWhile the idea of refinancing a mortgage soon after getting the first one may sound odd, there are some clear benefits that can make it an excellent choice in certain circumstances:\n*   **Lower monthly payments**: If your financial situation has changed and you need a lower monthly payment, refinancing could make it possible to get a loan with a longer term. And if interest rates have dropped since you first got the loan or your credit score increased dramatically, qualifying for a lower interest rate could also reduce how much you owe each month.\n*   **Eliminated private mortgage insurance (PMI)**: Conventional mortgages typically require PMI if you put down less than 20% of the loan amount at closing. If, however, the value of your home increased quickly or you've made a large payment and qualify to get rid of it, refinancing could save you money. Also, some government-insured loans charge mortgage insurance, and refinancing one into a conventional loan could get rid of it.\n*   **Change in interest rate structure**: Borrowers can choose a fixed- or adjustable-rate mortgage (ARM). While an ARM can save you money upfront with a lower fixed interest rate for a set period, it becomes variable once that period ends. If you notice that interest rates are rising and want to lock in a low fixed interest rate to avoid taking on too much risk, refinancing can allow you to do that.\n*   **Equity cash-out**: If you need cash fast and want to avoid high-cost loans, doing a cash-out refinance will give you access to some of the equity in your home at the cost of the new mortgage loan.\n*   Borrower removal: If you were recently divorced and both spouses were on the loan, it may be a good idea to refinance the mortgage into the name of the person who plans to live in the home. END