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There are a number of reasons to
consider refinancing the loan on your
home. Some people refinance as a way of
taking advantage of lower interest
rates, enabling them to reduce their
monthly mortgage payments. Some
refinance to a shorter-term mortgage,
which enables them to build equity in
their homes faster. And some homeowners
refinance to tap into the equity they've
accumulated in their houses, using the
funds for home improvement or other
needs, such as debt consolidation or
their children's education.
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Learn More
Should you refinance?
Consider your refinancing options
Examining and understanding benefits of
refinancing
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Do you want to
take advantage of these benefits, but
wonder if refinancing will be worth the
time and money you'll need to invest? Do
you feel unsure about the entire
refinancing process?
Don't worry. The refinancing process is
very simple. It involves paying off your
existing mortgage loan and taking out a
new one on the same house. Your new
mortgage loan could be at a more
attractive interest rate, or for a
different term. Or, you could get an
entirely different type of loan — for
example, you could switch from an
adjustable-rate mortgage (ARM) to a
fixed-rate mortgage.
If it's been a few years since you got
your current mortgage loan, you may need
to refresh your memory about some of the
terminology used on these pages, so be
sure to refer to our glossary of
mortgage- and
lending-related
words and phrases. Look
through the
Buying a Home
section of our site for a more-detailed
description of the importance of your
credit, your loan options, and the
mortgage process. And take advantage of
our tools and calculators — including
our
Refinance
Calculator — to test the
anticipated effect of different
scenarios and different loan options on
your financial future. |
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