Refinancing

Should You Refinance?

When you refinance your mortgage, you are actually replacing it with a brand new loan. In doing this, expect to go through a mortgage application process similar to what you experienced with your original mortgage. Refinancing is often a sound financial choice that can allow you to meet a variety of needs:

• Reduce your monthly payments by taking advantage of lower interest rates or extending the repayment period.
• Reduce your interest rate risk by switching from an adjustable-rate to a fixed-rate loan or from a balloon mortgage to a fixed-rate loan.
• Reduce your interest cost over the life of your mortgage by taking advantage of lower rates or shortening the term of your loan.
• Pay off your mortgage faster (accelerating the build-up of equity) by shortening the term of your loan.
• Free up cash for home improvements or to consolidate debts.