What does refinancing a mortgage mean?

Refinancing your mortgage means you're replacing the original mortgage on your house with a new mortgage loan with different financial terms. Borrowers might refinance their mortgage to shorten the length of the loan or take advantage of lower mortgage rates to reduce their monthly payment. Would a mortgage refinance make sense for you?

Can you refinance a mortgage?

The term “refinance” is a bit misleading. When you refinance your mortgage, you’re not redoing it; you’re replacing your current mortgage with an entirely new loan. You could refinance with your current lender or work with a different one. How does refinancing work?

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.