What is a Refinance?
A refinance is the process by which you replace an existing mortgage with a new one (or take out a mortgage secured to a property you own outright). You can only refinance a home that you already own.
Reasons to refinance include:
• Lowering your interest rate
• Reducing your monthly payment
• Changing loan type to reduce risk, such as fixing in an adjustable rate
• Consolidating debts
• Taking cash out for home improvements, investing or other purposes
• Buying out a partner or ex-spouse
To refinance your loan, you will pay a new set of closing costs. Before spending good money on a new loan a little analysis is in order—you want to be sure the benefits of the new loan outweigh the costs of setting it up.
If you are thinking about refinancing, we’d be happy to assist you. We’ll gather some information, discuss your plans and goals, crunch some numbers and provide you with an analysis and some advice.
In addition to our glossary, we have a library of downloadable PDFs that cover planning your purchase and gathering documentation, as well as all the mortgage fundamentals.
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