When you own a home, you often have a mortgage. But the interest rate you secure when you take out your mortgage doesn’t have to be forever. A refinance can secure you a better rate or different mortgage terms. Figuring out if a refinance is right for you requires the consideration of several factors. These range from your current home value and mortgage details to refinance rates and LTV or loan-to-value limits.

It’s important to see how refinancing will impact your monthly payment and if refinancing to a new loan with new terms makes financial sense for you in the long run as well. Before you get there, it is a good idea to better understand these factors that go into the decision-making. You will hear a lot about your loan-to-value ratio and refinancing loan-to-value limits in your research. Check out the details below so you can more properly decide if refinancing your mortgage is the right move for you.

via How Much Equity Do I Need to Refinance? | Credit.com.