While it's tempting to hold on to an impressively low interest rate, it may not be the best decision. Household budgets are complex and nuanced. The long-term cost of your mortgage is only one consideration.

If you have a really good interest rate, but your monthly budget still feels a little bloated, a Boles Group lending professional can review your financial situation, work with you to define your big-picture goals and suggest a mortgage solution that makes the most sense for your individual circumstances.

A refinance won't always be the best option, but here are just a few cases where a refinance might be a good choice (even at a higher rate).

Remove mortgage insurance. Quickly rising property values allow home owners to drop their PMI payments much sooner than expected.

• Apply the extra money to the loan principle every month.


• Save it and avoid using credit on your next vacation or large purchase.


• Use the money to pay down your auto or student loans.

Convert equity to cash. Think of it like selling your house to yourself. You borrow up to 80% of the current value of the home with a brand new mortgage. Once the original loan is paid off, the rest of the money is yours.

• Pay off high-interest credit cards.


• Get rid of medical debt, student loans or back taxes.


• Put in a pool, buy a car or take a vacation!

Change the loan term. Although interest rates are on the rise, refinancing to change the terms of the loan could still benefit many borrowers.

• Lower your monthly payments by refinancing a 15-year loan to a 30-year loan.


• Lower your rate after improving individual risk factors (Credit, DTI, Etc.).


• Avoid a balloon payment by refinancing to a fixed-rate mortgage.

If you aren’t sure if a refinance is a smart choice for your circumstances, call the Boles Group at Bay Equity Home Loans in Gilbert. A licensed Boles Group loan officer will review your current financial situation, find your available options and help you come up with a plan to help you reach both your short-term and long-term goals.