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Most people don’t realize what an important financial step refinancing is. Circumstances change, and mortgages should too. If you’re wondering whether or not you’re a good candidate, here are some of the top reasons why refinancing could be right for you.

Home prices are up — way up. According to the Federal Housing Finance Agency, home values have increased by about $100,000 since 2012. Depending on your area, appreciation in homes is even greater!

When refinancing a mortgage, essentially, you have two choices. If you refinance your existing loan to get a lower interest rate or change the terms, it is called a rate-and-term refinance. If you want to extract some of the equity in your home—perhaps to do a renovation, pay down debts, or help pay college costs—you may take a cash-out loan.

When it comes to determining your mortgage rate, your credit score is a critical factor. Think about it from the bank’s perspective. They are lending you money for 30 years. Over that time frame, you’ll likely change jobs, face tough times, watch your neighborhood change, and go through multiple market cycles. Your current financial picture – including down payment, assets, and income – are important. But a credit score gives the bank an idea about whether you’re likely to make payments responsibly even if things change.