Looking to refinance your home? Want to lower your interest rate or switch from an adjustable-rate mortgage? Mortgage refinancing may be the right answer for you.
Looking for Better Terms on Your Interest?
Mortgage refinancing is replacing an older loan with a new loan that offers better terms.
There are many reasons why borrowers choose to refinance a mortgage loan, including:
- Lowering interest rates available
- Shortening the term length of a mortgage
- Consolidating debt
- Using home equity for large expenses
- Switching from an adjustable-rate to a fixed-rate loan
- Buying out a former spouse during a divorce
- Changing mortgage companies
Since refinancing can cost between 3% and 6% of a loan’s principal and—as with an original mortgage—requires an appraisal, title search, and application fees, it’s important for a homeowner to determine whether refinancing is a wise financial decision. – Investopedia
To refinance your mortgage loan, the steps are very similar to the process of initially getting a mortgage for the purchase of your home.