“ What is a mortgage refinance?”
A mortgage refinance loan is the replacement of your existing mortgage with a new home loan that may have different or more favorable terms, such as a shorter repayment term, a lower interest rate, or lower monthly payments.
Benefits of Refinancing:
1) Lowering your interest rate
Obtaining a lower interest rate can help you save money over the life of the loan
2) Modifying the Term of Your Loan
Changing the term on a mortgage loan (for example, from 30 years to 15 years mortgage) can help you achieve specific financial goals. With a shorter term, you will pay less interest over the life of your loan.
3) Debt Consolidation
Consolidating multiple debts into one easy-to-manage home loan can make life easier and potentially save you money, particularly if other debts feature higher interest rates.
4) Free up cash
With a cash-out refinance loan, you can get access to funds for home improvements, college tuition or unexpected medical expenses. The purpose of this type of loan is to extract equity from your home.
