What are the reasons to refinance?
The most common reason is to get a lower interest rate, resulting in lower monthly payments and possibly a shorter loan term. Other reasons to refinance include switching loan types, eliminating private mortgage insurance (PMI), and cashing out home equity to cover big expenses or consolidate high-interest debts.
Should I refinance?
Determining whether to refinance your mortgage depends on your individual financial situation. It can make sense to refinance if mortgage rates are dropping below your current rate, your home has appreciated in value, or you have been making consistent, on-time payments on your original 30-year mortgage for less than ten years.
What fees are associated with refinancing a mortgage?
In addition to an application fee, you will generally need to pay the same expenses that were incurred with your original mortgage.
How long does it take to refinance?
Refinancing typically takes between two and four weeks. The length of time can depend on a number of factors like the appraisal and neighborhood comparables.
Can I refinance to take cash out of my house?
Yes, you have options to tap into your home equity. Your lender can help determine the right solution for you.