Just because mortgages tend to have long terms, that doesn’t mean you have to keep the same loan for the duration. After all, life doesn’t stand still, and the mortgage you started with may no longer be the best fit. That’s where refinancing comes in.
Refinancing is a flexible option for homeowners looking to optimize their financial goals. It allows you to take out a brand-mortgage that pays off and replaces your existing one, giving you a full reset, with a new loan agreement, and, typically, new terms, including your mortgage rate.
Refinance rates usually move in step with purchase mortgage rates, but they’re often a little higher. Because they can also change frequently, it pays to keep an eye on them, so you don’t miss a chance to lock in a better deal on a new loan. An optimal refinance rate can go a long way toward cutting the total interest you’ll pay over the life of yourmortgage.
Explore today's refinance rates
There are many reasons and ways people choose to refinance. Depending on your priorities, you may want to refinance to lower your interest rate and reduce your monthly payments, or you might want to focus on lowering your rate while also shortening your loan term so you can own your home outright sooner. If you’ve built up significant equity in your home, refinancing may also be a way to tap cash for a major expense or renovation.
