Refinance allows you to replace your existing mortgage with a new one, taking advantage of new mortgage terms, lower interest rates, or cashing equity out of your home. Refinance also allows you to consolidate other debt, including student loans, personal loans, credit cards and even other second mortgages such as a HELOC (Home Equity Line of Credit).
If your home value has increased or current interest rates are lower that your current mortgage, consider a refinance to:
Pay off your mortgage sooner and save more money
Lower your interest rate and possibly your monthly payment
Convert your adjustable rate mortgage (ARM) to a fixed interest rate mortgage
Combine multiple mortgages on a property into one mortgage
Consolidate debt from credit cards or pay off student loans and save money
Make investments from the cash proceeds or purchase other properties