Refinance

Refinancing a home is the process of replacing an existing mortgage with a new one that has more favorable terms. The purpose of refinancing is to achieve one or more goals, such as:

• Lowering interest rates
  This can reduce monthly payments and the overall cost of the home. Refinancing can be especially worth it if the interest rate can be lowered by 0.25%, 0.5%, 1%, or more.
• Consolidating debts
  Refinancing can allow debts to be consolidated into one loan at a lower interest rate.
• Changing the length of the loan
  Refinancing can shorten the term of the loan, such as moving from a 30-year loan to a 15-year loan.
• Switching between fixed-rate and adjustable-rate mortgages
  Refinancing can allow a homeowner to switch from a fixed-rate mortgage to an adjustable-rate mortgage (ARM) or vice versa.
• Accessing home equity
  Refinancing can allow homeowners to tap into their home equity to raise funds for home improvements, repairs, financial emergencies, or large purchases.