With a refinance, you will pay off your current loan with a new loan and restructure the mortgage to fit your needs. Refinancing may be the best decision if your home value significantly increased or current interest rates are low.
- You may able to shorten your loan’s term to save more money
- It can lower your monthly payments if you refinance into a loan with an interest rate that’s lower than your existing rate
- You might prefer to switch to a loan at a fixed rate if you have a variable-rate loan that causes your monthly payments to fluctuate up and down as interest rates change.
- Turn your home equity into cash
- Consolidate debt from higher interest rate credit cards or subordinate financed loans into one loan which may result in lower monthly payments