Mortgage rates are still low, and there is no guarantee that we won't see some rate hikes from the Fed in the coming year. There are many reasons that someone might want to refinance their home, some more common or obscure than others.

One thing that all homeowners need to consider is that there are costs involved with refinancing a home. As long as you are going to be in the home for a sufficient period, your new loan could recoup those costs through savings. Here are just ten reasons why you may want to consider refinancing your mortgage.

1. Lower your interest rate. Obviously, if interest rates are lower than when you originally took out your loan, you will probably get a better deal refinancing. This may not be the only way to benefit from refinancing, however.

2. Shorten/extend your term. Some people want to pay off their mortgage faster, so refinancing with a shorter term mortgage, such as a 15-year fixed, is a good choice. Or life’s circumstances may have changed where you want to extend your term and slow down the amortization.

3. Lower your payment. If you are just looking to free up monthly cash flow, you can refinance and do this in several ways. You can lengthen your payoff term or choose an interest-only loan.

4. Convert your loan. When you refinance your mortgage, you can convert your current loan from a variable rate to a fixed rate loan or vice versa.

5. Cash out equity. If you have equity in your home, refinancing can allow you to take out that cash to use for any reason you see fit. If you want to remodel or pay off some debts, this could be the solution.

6. Combine first and second mortgages. A common reason for refinancing a mortgage is to combine a first and second mortgage into one loan with more favorable terms.

7. Drop your PMI. If your home increases in value enough, you may be able to drop your PMI. Refinancing could allow you to both drop PMI and get a more favorable rate.

8. Remove a person from a loan. If you are getting a divorce or just otherwise want to buy someone out that is listed on a loan, refinancing can help you accomplish this.

9. Access special programs. At times, the government will produce special programs allowing for the refinancing of certain loans. These are often time-sensitive. If you qualify for one of these programs and it's to your benefit, you should apply.

10. Your buyer profile has changed. Assuming your original loan was just after a bankruptcy or foreclosure, your credit may now be significantly improved which would qualify you for more favorable loan terms through refinancing.

Refinancing Your Mortgage with City Bank

If you're interested in refinancing your current mortgage, find out how City Bank's competitive loans can help you meet your goals. City Bank Mortgage is an independent community bank that offers a full line of mortgage products including FHA, VA, USDA, fixed rate, adjustable rate, construction loans, and jumbo mortgages. Complete an application now or contact us to discuss your mortgage needs.