When you refinance your mortgage, you are taking out a new loan to pay off and replace your existing loan. This is usually done to accomplish one of several things:
- Secure a lower interest rate and reduce your monthly payment to save money
- Pull cash out of your home’s equity to remodel, complete major home repairs, pay off debts, or invest in other things
- Convert from an Adjustable Rate Mortgage (ARM) to a Fixed Rate Mortgage
- Change the length of your loan so you can pay it off more quickly
Wondering how much money you could save by refinancing? With interest rates still near all-time lows, now is the time to consolidate debt, complete that remodel, and secure a predictable low monthly payment on your mortgage.