Homeownership is a long-term investment. One of the most common questions borrowers have is whether it makes sense to refinance a current mortgage loan. While every individual's situation is unique, there are common scenarios when refinancing can be a good idea:
A rate-term refinance has a loan amount that is precisely enough to repay the balance of your existing mortgage. A cash-out refinance has a loan amount that exceeds the current mortgage balance, enabling you to receive cash from the transaction.
Refinancing can be very beneficial, but there are fees that go along with it. That's why it's important to weigh the up-front costs against the immediate and long-term benefits. By talking with an experienced mortgage professional, you can determine what makes sense for your situation and expectations.