Refinancing a Home

Refinancing is the process of replacing an existing mortgage with a new loan. The principal balance of the existing loan is paid in full using the balance of the new loan.

Typically, people refinance their mortgage in order to reduce their monthly payments, lower their interest rate, or change their loan program from an adjustable rate mortgage to a fixed-rate mortgage. Additionally, some people need access to cash in order to fund home renovation projects or paying off various debts, and will leverage the equity in their house to obtain a cash-out refinance.