- Rate–and–term refinance: This type of refinance changes the interest rate and/or loan term of your existing mortgage. It can be used to lower your monthly payments, shorten the loan term, or both.
- Cash–out refinance: This type of refinance allows you to borrow against the equity in your home, providing you with a lump sum of cash. It can be used for a variety of purposes, such as home improvements, debt consolidation, or education expenses.
How do I know if refinancing is right for me?
Refinancing can be a beneficial financial move for many homeowners, but it’s not always the right decision. Consider refinancing if you:
- Have a good credit score and a stable income
- Can qualify for a lower interest rate than your current mortgage
- Plan to stay in your home for several more years
- Want to lower your monthly payments, consolidate debt, or access equity in your home
What are the steps involved in refinancing?
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