Refinancing means replacing one loan with a new, better loan. Improving the terms of a loan can mean obtaining a lower interest rate, a lower monthly payment, replacing an adjustable or variable rate loan with a fixed-rate loan or increasing the size of the loan and taking the difference in cash.
Refinancing means replacing one loan with a new, better loan. Improving the terms of a loan can mean:
Auto loans, student loans, credit cards and other types of debt can be refinanced, but most of the time when people discuss refinancing, they are referring to mortgage refinancing.
Mortgage refinancing can take several forms. Here are the most common:
When refinancing a mortgage, homeowners should make a point of comparing mortgage quotes from several competing mortgage lenders. Home loan rates and terms can vary a great deal between mortgage lenders, and studies have shown that obtaining at least four loan quotes significantly increases the homeowner’s change of getting the lowest rate available.