There is always an opportunity to refinance as long as the numbers make enough sense to move forward. You can:

1. a) Refinance, lower your payment, rent your current home for profit and relocate to a lower-priced rental.
2. b) Refinance and take advantage of increased property values and higher credit score to lower your rate and remove mortgage insurance for lower payments. A rate can be the same or higher and still lower your payments.
3. c) Consolidate credit card and education debt into one mortgage loan to lower the total payment.
4. d) Switch from a 30-year fixed rate to a 15-year fixed rate to build equity, or from a 15-year to a 20-year or 30-year to free up cash. (Suggestion—take advantage of lower rate adjustable mortgages, if you plan on moving or paying it off before the adjustment period.)
5. e) Pay off an existing mortgage with a reverse mortgage and free up cash (great product for the right people over 62 years old).

If your property has not increased in value, offset the lack of equity by:

• Borrowing with lender-paid mortgage insurance, which is inexpensive.
• Taking a Harp mortgage.
• Building equity into your home. Refinance into a one-time close construction loan. You can build equity and lower your mortgage payment in one shot.

Carl E. Guzman, CPA, is the president and founder of Greenback Capital Mortgage Corp., a Mortgage Broker/Banker in New York, New Jersey and Florida, celebrating over 25 years of assisting borrowers with their financing needs. He is a CPA by training and a licensed real estate broker in New York and New Jersey specializing in complex residential and commercial mortgage solutions.

By Carl Guzman