Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance:
The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan’s lifetime.
Adjustable Rate Mortgages are loans whose interest rate will change during the loan's term. The number of times the interest rate changes and the duration between initial and subsequent changes are set. These loans usually have a fixed interest rate for an initial period of time and then will adjust based on current market conditions.
Some ARM loans have a conversion feature that would allow you to convert the loan from an adjustable rate to a fixed rate. These are called as Hybrid ARMs.
Refinancing can be a great financial move if it reduces your mortgage interest rate, shortens the term of your loan, or helps you build equity more quickly. When used carefully, it can also be a valuable tool for bringing 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? How much money will I save by refinancing?
Regardless of why you’re thinking about refinancing, it’s important to weigh all your options and come up with a strategy that makes sense for your personal financial goals.
We're committed to helping you refinance with the lowest rates and fees in the industry today. Check out our low rates, calculate your payment, or start the process today!
