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The reason to refinance an existing mortgage is most of the times to take advantage of lower rate of interest. However, what is important is to know when the right time to refinance is. Here are some points to be considered:

- If you have taken a loan while you had bad credit score, then you can refinance for improvement of your credit ratings.

- Mortgage interest rate substantially reduce (approximately 2%), such that you can save a good amount paid as interest and the burden on your monthly budget comes down.

- Your income has increased and you desire to obtain a higher amount of loan.

- The benefit to cost ratio of refinancing is positive, i.e. the application and closing fees as well as prepayment penalty are lesser than the amount you save after refinancing.

Options are financial devices that have the rights to involve in a financial transactions pertaining to purchase of securities. For example, if a person purchases a call option, he is provided with the privilege of buying a specific amount of securities from the money market in the future or before the term of the option expires. It also provides the buyer with the option of selling the securities in the market.  

The value of an option depends on the financial conditions and the stability factor of the money market. The options are easy to manage so the risk factors can be controlled. There are different types of options, such as, exchange-traded options, real estate options, over-the-counter options, employee stock options, which are available at few places, and prepayment options.