If it's early on in your mortgage term. Refinancing is usually best if you've been in your home a short time as your payments are primarily going toward interest. Down the road when you shift to paying more principal than interest, keeping your original loan may be best.

When interest rates are dropping. It may be a good time to refinance if mortgage rates are falling. By either keeping your current repayment term and lowering your monthly payments or keeping your monthly payments relatively the same and shortening your repayment terms, you may reduce your total borrowing costs.

If your home has increased in value, refinancing may allow you to take advantage of that boost in equity. You could then use those funds to pay off debt or make a large purchase.

To lower your monthly payments. Want to free up cash? If you're planning on being in your home for a while, you may want to refinance for a longer term; if you're looking to move in a few years, you may want to opt for a lower rate adjustable-rate mortgage (ARM). Either way, you could lower your monthly payments.

To reduce the home's total cost. Provided rates are lower than when you purchased, refinancing for a shorter term may allow you to pay your home off sooner and lower your interest payments. Your monthly payments will be relatively the same and you could save thousands in interest over the life of the loan.

To take cash out. Taking cash out means using your home's equity to refinance for more than you owe on your principal mortgage balance in order to get a cash payout. Keep in mind that cash-out refinancing does increase your overall mortgage debt.

Once you've determined that conditions are right for you to refinance, work with your GENCO Loan Processor to select the best refinancing option for you and understand what the next steps are for the loan you're refinancing.

*The credit union is not authorized to offer tax advice. For information, consult with your tax advisor. Membership eligibility required. Certain restrictions apply.