Back to Library

Refinancing Guide

Unlock savings or access equity by updating your mortgage.

Why Refinance?

Refinancing replaces your current mortgage with a new one. Here are the main reasons homeowners choose to do it:

  • Lower Your Interest Rate: If market rates have dropped since you bought your home, refinancing can lower your monthly payment and save you thousands in interest.
  • Shorten Your Term: Switch from a 30-year to a 15-year loan to pay off your home faster and build equity quicker (though monthly payments may rise).
  • Access Cash (Cash-Out): Tap into your home's equity to pay off high-interest debt, fund renovations, or cover major expenses.
  • Remove PMI: If your home value has increased enough to give you 20% equity, you can refinance to eliminate Private Mortgage Insurance.

Types of Refinances

Rate-and-Term Refinance

Changes the interest rate, the loan term, or both, without advancing new money. The goal is usually to save money monthly or over the life of the loan.

Cash-Out Refinance

You take out a new loan for more than you owe on your current mortgage. The difference is paid to you in cash. This typically has a slightly higher interest rate than a rate-and-term refi.