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A Quick and Easy Guide to Home Mortgages
What About Refinancing Your Mortgage?
Refinancing is the process of obtaining a new mortgage with all or some portion of the proceeds used to pay off the original mortgage.
Refinancing can be a good idea for homeowners who:
- Want to lower monthly payments by getting a lower interest rate loan.
- Want to convert from an adjustable-rate mortgage (ARM) to a fixed-rate loan for the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
- Want to build up equity more quickly by converting to a loan with a shorter term.
- Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.
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