When mortgage rates are low, homeowners often question if it's time to refinance. If interest rates
drop 5/8 percent or more below your existing rate, refinancing may benefit you. Closing costs are associated with refinancing so it's important to determine if refinancing will support your
overall goals. Be clear about your reason for refinancing and feel confident that you will remain in your home long enough to recoup expenses.

Refinancing can offer the following benefits:

Refinancing may lower your monthly payment amount or, if you change the length of your loan, reduce the overall number of payments.
If interest rates are lower than your original rate, refinancing to a lower rate will allow you to pay less in interest.
If you'd like to change your loan from an adjustable-rate to a fixed-rate mortgage, refinancing allows you to accomplish that.
A refinance can be used to pay off your first mortgage and your home equity line of credit, leaving you with a single monthly payment.
For homeowners who have built equity in their home, refinancing to a larger loan amount provides additional money for home improvements, college tuition and other important needs. This option is called a cash-out refinance (not available in Texas).
Although refinancing includes closing costs, you have the option to roll this expense into your mortgage. So, a refinance does not have to incur out-of-pocket expense.

Contact a BB&T mortgage professional to help you determine if refinancing is a good option for you.