What is Mortgage Refinance?
Replacing your mortgage with a new loan to lower your rate, change terms, or access equity. Has closing costs of 2-5% of the loan.
Refinancing replaces your existing mortgage with a new loan, typically to get a lower interest rate, change loan terms, or access equity (cash-out refinance). Rate-and-term refinancing changes the rate or term without taking cash. Refinancing has closing costs (2-5% of loan), so you should calculate break-even time to ensure savings exceed costs.