Refinance Your Mortgage: Understanding Your Options

Refinancing means replacing your existing mortgage with a new loan. The new loan pays off the old one, and the borrower makes payments under the new terms. Refinancing can change the interest rate, the loan term, the loan type, or the loan amount.

Refinancing might make sense when it aligns with your goals, such as changing your interest rate, switching from an adjustable to a fixed rate, changing your loan term, or accessing equity. The decision should consider whether the benefits outweigh the closing costs.

Yes, investment properties can be refinanced. The process and requirements may differ from refinancing a primary residence, and cash-out refinancing on an investment property involves additional considerations. Your loan officer can explain the options.

Refinancing involves closing costs similar to the original mortgage, which can include an appraisal, title insurance, lender fees, and other expenses. Your loan officer can provide an estimate of the costs and help you evaluate whether refinancing makes sense.

You may want to ask about the different types of refinance, what the closing costs are, how long it may take for savings to offset the costs, whether a streamline refinance is available, and how your current loan compares to potential new terms. A loan officer can guide you through these questions.