When you refinance your mortgage means you will be obtaining a new loan to replace the loan you currently have on your home.

You should consider refinancing if you are interested in paying off high-interest-rate debt, shortening the length of your repayment term for your home loan or lowering your monthly mortgage payment.

When considering refinancing you r home mortgage one or more of the following conditions needs to be present before you should consider refinancing your mortgage:

• Mortgage interest rates are falling
• Your home has significantly appreciated in market value
• You've been making payments on your original 30-year mortgage for less than ten years

First Alliance Home Mortgage offers a variety of loan refinance options that allow you to tap into your home's equity and take cash out. Consult First Alliance Home Mortgage loan officer for the best cash- out refinancing option for you.

There are several reasons to consider refinancing depending on if you want to lower your payments, pay your home off sooner or take cash out.

• You want to lower your monthly payments. One benefit of refinancing is that you can free up some money by reducing the amount you’re paying for your mortgage each month. Its easy to lower your payments by refinancing for a longer time frame, like a 30-year fixed loan. If not considering living in your home for more than a few more years, you may choose to refinance at a lower interest rate using an adjustable-rate mortgage (ARM).
• You want to reduce the total amount you pay for the home. If you want to pay off your home sooner and lower the total amount of interest you’re paying for it, you can refinance for a shorter loan term. If interest rates have dropped, you may be able to keep your monthly payment about the same as it is now, and pay off your home a few years earlier. Doing this could potentially save you thousands of dollars in interest over the life of the loan.
• You want to use your home’s equity to take cash out. Another reason to refinance is to take cash out to pay for home improvements, consolidate debt or make a big purchase. Taking cash out means using your home’s equity to receive a one-time cash payment during refinancing. To receive cash out, you'll need to get a loan for more than you owe on your principal mortgage balance. Remember that cash-out refinancing also increases your overall level of mortgage debt.

Cash out refinancing can help homeowners who want to consolidate high-interest debt. Normally your mortgage interest rate is lower than rates on credit cards and other types of bank loans, consolidating debt can reduce your overall monthly debt payments.

Normally a house appraisal is needed in order to refinance. However, depending on the circumstances, an appraisal may not be required. Consult your First Alliance Home Mortgage loan officer if an appraisal is necessary before you start the refinancing process