REFINANCING YOUR HOME
If you’re a homeowner, you might be hearing everyone—from your neighbors to news anchors—talking about refinancing.
So, should you be considering it too?
What is refinancing a mortgage?
When you refinance your mortgage, you are basically swapping out your old loan for a new one. There are two main types of refinances: rate-and-term refinance and cash-out refinance.
RATE-AND-TERM REFINANCE
The remaining balance on your current mortgage is transformed into a new loan that has a better rate and/or term for your situation.
CASH-OUT REFINANCE
You liquidate some of your home’s equity, creating a new loan that consists of your previous mortgage balance plus the cash you took out.
There are many situations in which refinancing your mortgage may be right for you:
- Rates have dropped; this could mean lower monthly payments
- Your home value has increased
- You want to take cash out
- You want to consolidate your debt
- Shave years off of your mortgage; this could save thousands over the life of your loan
- To eliminate mortgage insurance
- The fixed period on your adjustable rate mortgage is ending
- Your credit score has improved since you originally purchased your home
If you want to know if a refinance is right for you
Take our quiz to find out!
Want more information on specific types of home loans available to you? Check out our loan options section!