Mortgage rates are finally declining. Freddie Mac reported on Oct. 9 that the average conventional 30-year and 15-year mortgage rates were fixed at 6.3 percent and 5.53 percent, respectively.

One year ago, the rates were 7.04 percent and 6.27 percent, respectively. As a result of this enticing news, refinancing is on the minds of many homeowners. The decision whether to take the plunge is a highly personal matter, however, and is specific to each borrower’s situation.

Since there is no such thing as a “one size fits all” reason why one may desire to refinance, the first order of business is to identify the purpose of the refinancing.

Motivation : Typically, there are three reasons people choose to refinance their loans: Reduce their monthly payment, reduce the term of their loan, or ge

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