Home Financing Library
Many borrowers use a refinance to shorten the term of the mortgage.
Another way to make a refinance work is for you is to refinance for more than the balance remaining on your old mortgage. In a low rate environment, you may be able to tap into your equity without increasing your monthly payment.
By switching to a fixed rate loan, it is possible to reduce your payment and lock in at an attractive rate for as long as you own your home.
When you refinance your mortgage, you usually pay off your original mortgage and sign a new loan. With a new loan, you may pay some of the same costs you paid to get your original mortgage.
Check the market closely to determine the available rates and the costs associated with refinancing. These costs can include items such as an appraisal and other various fees and points.
If you are thinking about refinancing your mortgage, you might want to consider other types of mortgages. For example, you might want to look into a 15-year fixed rate mortgage.
Considerations you should look at when deciding to refinance.