What is refinancing a mortgage?

Here's an explanation for Refinancing replaces your current mortgage with a new one, adjusting the rate, term or both. With refinancing, you can change the loan type as well as your lender.

Why should I refinance my mortgage?

You can refinance your mortgage for a variety of reasons. A lot of homeowners refinance because rates are constantly changing, home improvement projects are on the horizon and saving money is always a good feeling. What is refinancing? Refinancing is when you pay off an existing loan with a new loan.

What happens if you refinance a mortgage?

Refinancing replaces your current mortgage with a new one, adjusting the rate, term or both. With refinancing, you can change the loan type as well as your lender. To refinance a mortgage, you'll pay between 2 and 5 percent of the loan amount in closing costs, so if you're refinancing to save money, you'll need to calculate your break-even point.