Types of Mortgage Refinancing

Why Refinance? Key Benefits

• Lower Monthly Payments: Secure a reduced interest rate to save money over time.
• Debt Consolidation: Use cash-out refinancing to pay off high-interest debts (e.g., credit cards).
• Shorten Loan Term: Pay off your mortgage faster with a shorter term (e.g., 15 years).
• Switch Loan Types: Convert an adjustable-rate mortgage (ARM) to a fixed-rate loan for stability.
• Remove PMI: Build enough equity to eliminate costly mortgage insurance.

When Does Refinancing Make Sense?

• Interest Rates Have Dropped: A 0.5–1% rate reduction can lead to significant savings.
• Your Credit Score Improved: Qualify for better terms with a stronger credit profile.
• You Need Cash: Access equity for major expenses without taking out a separate loan.
• You Want Financial Flexibility: Adjust your mortgage to align with changing goals (e.g., retirement planning).