Home loan rates What you need to know
The amount remaining after paying off your prior loan, other existing liens, and your points and closing costs is yours to use as you wish. Two of the more popular reasons for mortgage refinancing in this manner are to pay off outstanding credit card debt or make improvements to the property. The major attraction of using the proceeds in this way is that, unlike credit card interest and home improvement loan interest, the interest on a refinanced mortgage loan is tax deductible. Maintaining steady employment, high credit score and conservative spending habits, translated to low credit balances, will all influence your chances of getting a favorable interest rate from your lender. Your mortgage refinancing costs decrease exponentially to the lending risk you pose to the bank.