8 Great Tips For Refinancing Your Mortgage
Author:
Victoria ArajApr 25, 2024
•8-minute read
When you refinance your mortgage, you replace your current home loan with a new rate, loan term or principal balance. The funds from your new loan pay off your old mortgage, offering you a single monthly mortgage payment that can be more affordable and manageable.
Understanding the requirements to refinance your mortgage is only half the equation. The other half is to learn the do’s and don’ts of mortgage refinancing to help ensure a straightforward and successful process. Let’s look at eight tips to simplify refinancing your house.1. Determine Your Reason For Refinancing
Before applying for a mortgage refinance, figure out why you’re refinancing in the first place. Here are a few common reasons homeowners refinance their mortgages:
- To lower their monthly payment
- To lock in a lower interest rate
- To shorten or lengthen the loan term
- To access the equity in the property
- To remove private mortgage insurance (PMI)