Refinancing loan is a loan taken to pay off an existing mortgage or replace it with a new one.  Refinancing has many benefits. Below are just some of them.

• Lower interest rate. By refinancing loan, it is possible to reduce the interest rate by 1 percent or 2 percent.

• Shorten the term of the mortgage. If you refinance to make additional principal payments on your mortgage, you will shrink your total interest expense and shorten the term of your loan.

• Convert an adjustable rate to a fixed-rate mortgage, or vice versa. An adjustable rate mortgage is a great choice for first-time home buyers. However, interest rates may rise and converting to a fixed-rate loan is a better choice.

If you are in Texas, now is an excellent time to apply for a refinancing loan because the interest rates are low.