Unless your mortgage rates are really rock-bottom low, call it luck or sheer shrewd negotiation skills, now that interest rates are going down, you may want to consider refinancing. Getting out of high interest rates, however, may not be the only reason to refinance; some will opt for refinancing to convert a variable rate mortgage into a fixed one so that they know for certain how much they will pay at any given time in the life of the mortgage. Others will want to shorten the tenor so that they can build equity quicker and get it over with. But for most, refinancing is essential to adjust to the changing family cash-flow brought about by economic factors.

How to refinance

Texas real estate and mortgage laws allow refinancing of up to 100 percent of an outstanding mortgage. This gives you the ability to cash out on your existing mortgage; the probability is high because you would have partially paid for the mortgage and the value of real estate properties would have appreciated over time. A simple example would be that you owe $50,000 still after paying already half of the original mortgage amount. Having the property re-appraised will show the market value has appreciated to $120,000. Get a new mortgage for $100,000, pay off the $50,000, and get $50,000 extra for other major purchases or the children's education.

Take time out to re-assess your financial capacity to acquire new or refinance mortgage. If you have a steady income stream, with stable job tenure, and with rates going low in your favor, then refinance. Calculate also the appreciation of not only your property's value but also the fees attendant to refinancing. If the margin is thin, you may end up paying more for refinancing costs than reducing your cash outlay. Of course, it goes without saying you can only refinance if there are no pre-termination or pre-payment penalties stipulated in the mortgage contracts. Read the fine print.

After you have adequately determined that refinancing is the better, if not the best, option, review the process when you first took out a mortgage. Take out those documents that are the usual requirements in mortgage transactions, like a credit report, ownership papers and titles, insurance policies, bank statements, property appraisal reports, etc. For sure you will go through the motions again as if you were applying for a new mortgage. But these are minor hassles compared to the ultimate payback now that rates are going low and you can take advantage of them by refinancing.

Finding help on refinancing in the Austin area

Real estate firms, legal firms, tax consultancies, and other providers abound in the Austin, Texas area to give you expert advice on whether to refinance your mortgage or not. They know that different homeowners have different circumstances, financial or otherwise, and they tailor-fit their mortgage advisory and assistance services accordingly. Moreover, they offer reasonable fees that you can easily recoup from the savings you get ultimately after your mortgage has been refinanced to your capacity. Check online sources or your local Austin chamber for help on refinancing now that rates are going down.