Best Answer by Ulises L

It can be used for many reasons. It can be used to lower your interest rate which will lead to a cheaper payment. In many cases if you've had your mortgage long enought if you refinance you will be making payments on a smaller loan amount therefore makiing cheaper payments. It can also be used to consolidate credit cards and car loans. Most of the time credit cards can range from 12-25% while mortgages range from 5-8%. It's a no brainer since you will save hundreds of dollars monthly and finally pay-off those credit cards where you're only paying interest that's accumulating. If you have no credit cards then it can be used to get some money out of your equity to invest, do home improvements, or anything where you will need a big chunk of money without having to worry about a ridiculous loan or credit card. You will be surprised to since in many cases for a couple more dollars a month you can reduce the amount of years of the life of the loan. If you have any questions feel free to contact me. ... See all 2 answers