Refinancing involves taking out a new mortgage loan to replace your existing one. A refinance can provide a number of benefits from saving you money or helping you accomplish other financial goals.

Borrowers choose to refinance their mortgage for many reasons:

  • Reduce monthly payments by capitalizing on lower interest rates
  • Reduce the term of the mortgage
  • Modify an Adjustable Rate Mortgage (ARM) to a fixed rate mortgage, or vice versa
  • Improve your lender benefits
  • Build equity

There are a number of advantages to refinancing, but the process isn’t without certain drawbacks especially when it comes to the fees involved. Depending on your situation, the costs of refinancing could outweigh the benefits, so you need to know what you can expect. The refinancing process typically includes:

  • Refinancing Loan Application
  • Property Appraisal
  • Loan Estimate
  • Final Loan Signing