Mortgage refinancing is the process of replacing your current home loan with a new one — usually to lower your interest rate, reduce your monthly payment, or change your loan terms. While refinancing can save money, it isn’t the right move for every homeowner.
When you refinance, you take out a new mortgage that pays off your existing loan. From that point forward, you make payments on the new loan instead of the old one.
The new loan may have a different interest rate, term length, or monthly payment. Some homeowners refinance to save money, while others do it to access equity or stabilize their finances.
Refinancing does not eliminate your debt or make your home free. You are still responsible for repaying the loan, and refinancing often comes with closing costs that should be considered before moving forward.
Whether refinancing makes sense depends on factors like your current interest rate, how long you plan to stay in your home, and how much you can save over time. Calculating your break-even point is one of the best ways to evaluate your options.
Use our refinance calculator to estimate your new monthly payment and see how much you could save by refinancing your mortgage.
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