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A dip in interest rates is often an ideal time to refinance. However, in addition to saving money, there are a number of other benefits that can come from replacing your old mortgage with a new one. Here are 5 benefits of refinancing your mortgage.

1. Get a lower interest rate and monthly payment

As a borrower, you could potentially save thousands of dollars over the term of your loan when you lock in a lower interest rate. And in many cases, a lower interest rate also means a lower monthly mortgage payment. This interest savings could allow you to pay off other high-interest debt, add to your savings account or put more dollars toward retirement.

2. Pay off your home loan early

Some borrowers are able to reduce the term of their loan by refinancing. If you are a borrower who has had your loan for a number of years, a reduction in interest rates can allow you to move from a 30-year loan to a 20-year loan without a significant change in monthly mortgage payments. Because the loan is paid off in a shorter period of time, you may benefit from a reduced interest expense.

3. Lock in a fixed interest rate

Borrowers with adjustable rate mortgages (ARMs) will often replace their loans with new ones that have a fixed interest rate. This is especially true when an interest rate adjustment period is approaching and a lower fixed rate can be obtained by refinancing your existing loan.

4. Obtain funds for home improvements or repairs

Home equity is built through mortgage payments, increases in home values or a combination of both. As a borrower, you can do a cash-out refinance to access the equity you’ve built up. This money can be used for a variety of purposes — finance home improvements or repairs, pay off high interest debt or pay for large expenses such as medical bills, legal expenses and college tuition.

5. Remove private mortgage insurance

With the exception of VA loans, as a borrower, you generally pay private mortgage insurance (PMI) when you finance more than 80% of your home’s value. In this situation, refinancing your mortgage may be an opportunity to remove this expense. This option is available to borrowers whose loan-to-value (LTV) is less than 80% because of a reduced loan amount, an increased home value, or both.