QandAs: Loans

How do I Refinance a Mortgage?

Answer:
To Refinance a Mortgage or Refi is the process

of paying off your current mortgage with a new home loan. In other words, you replace one mortgage loan with another. The most common reason for refinancing is to obtain a lower interest rate. You may qualify for a lower rate due to changes in market conditions, improvement to your credit score, or both.

Even a modest reduction in interest can save you thousands over the life of the home loan.

Homeowners also refinance to “cash out” the equity in their property. This means they borrow more than they owed on the previous loan to get cash for other purposes. These additional funds are commonly used to pay off other debts such as credit cards and auto loans.

Free Mortgage Refi information


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