A mortgage refinance is the replacement of an older mortgage with a new home loan that has different terms. During the refinancing process, the existing mortgage is paid off by the opening of the new mortgage refinance loan, and the prior mortgage balance is carried over to the new loan.
People refinance their mortgages for a number of reasons, including the following:
- To obtain a lower interest rate on a mortgage due to decreased interest rates or improved credit.
- Decrease the length of a mortgage.
- Refinance from an adjustable rate mortgage to a fixed rate mortgage to lock in a low, stable rate.
How to Save when Refinancing
One of the easiest ways to save when refinancing a mortgage is to shop around and get quotes from multiple lenders. This can save you tens of thousands of dollars over the life of the loan and help you find the best deal possible. Here are a few places where you can get multiple quotes in just minutes:
For additional refinancing information, see our Refinancing articles in the Personal Finance section of the site.