Low-rate periods also create an opportunity for borrowers to shorten their loan terms. You can request that your PMI be canceled when your equity reaches 20 percent, either through price appreciation, payments, renovations or a combination of the three, but only if your payment history is blemish-free and you've been in your home for at least two years. Cancellation isn't automatic until your equity reaches 22 percent. If your home's value has risen sharply enough to put you over the 20 percent threshold, refinancing is a way to sidestep those potential hurdles. You have other high-rate debt.
Mortgage debt carries the lowest rate available, and the interest is tax deductible.
You'll find a list of lenders with the best rates at mortgage tracker HSH Associates . Check first with your current lender, who may be willing to cut your rate faster and with less paperwork. Finally, don't hold out for an even lower rate. Mortgage rates are notoriously fickle. Time Inc. All rights reserved.