Refinancing is when you apply for a new mortgage loan to replace your existing mortgage.
Most people refinance when mortgage rates drop to save some money, but everyone will have different goals, such as:
- Lowering your interest rate to pay less total interest
- Shortening the term of their mortgage
- Changing the type of mortgage rate from adjustable to fixed or vice-versa
- Converting home equity to cash for financial emergencies, home renovations or other large purchases
Refinancing is a service you should shop for. Not all lenders are created equal and all lenders have a different process.
Getting a good deal is key. But with something as big as a home loan, finding a company that you trust that will produce the results you want is just as important. So, shop around before you settle on a lender.