How do I know if refinancing my mortgage makes sense?
It’s possible that you could lower your interest rate or reduce the amount of time left to pay off your loan. Refinancing can also be a helpful tool for home improvement or debt consolidation because you can get a one-time cash payment during the refinancing process.
Common reasons to refinance:
- Switch from an adjustable rate to a fixed-rate mortgage
- Change from one type of adjustable rate loan to another to lower your monthly payment
- Reduce your interest rate and your monthly payment
- Build equity faster by shortening the term of your loan to 15 or 20 years
To determine if refinancing makes sense to you, compare your current mortgage rate and term to the rates and terms listed at the top of this page. It’s also important to determine how much the closing fees and other associated costs, such as a home appraisal, will be to make sure you will actually come out ahead in the long run.