Refinancing is the process of paying off your existing mortgage with a new mortgage. Typically, you refinance your mortgage to reduce your interest rate and monthly payment or change the length (or term) of your mortgage. You may also refinance to take cash out from your home’s equity to work on that remodeling project you’ve wanted to do. If you’re refinancing to reduce your payments, you’ll want to calculate how long it will take before you recover the closing costs and begin to save money.
Refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan or helps you build equity more quickly. When used carefully, it can also be a valuable tool in getting debt under control. Before you refinance, take a careful look at your financial situation and ask yourself: How long do I plan to continue living in the house? And how much money will I save by refinancing? We would be happy to take a look at your current mortgage interest rate and provide you with details on whether refinancing is right for you.