Refinancing is taking a new loan with different terms and paying off the existing lien. Some of the reasons for refinancing may include lowering your mortgage payment, shortening your loan term or using the equity you’ve built over time to get cash out of your home with a home equity loan.
Deciding if it makes sense to refinance your home depends on a number of factors, but it starts with this one question:
What are your goals with refinancing your home?
Here are some common reasons most homeowners decide to refinance their mortgage: