Refinancing your home mortgage can potentially save you thousands over the life of your loan.
Refinancing works by giving a homeowner access to a new mortgage loan which replaces its existing one. The details of the new mortgage loan can be customized by the homeowner; including the new loan's mortgage rate, loan length in years, and amount borrowed. Refinances can be used to reduce a homeowner's monthly mortgage payment; to take cash out for home improvements; and, to cancel mortgage insurance premiums, among other uses.
Some of the reasons homeowners refinance include a desire to get a lower mortgage rate; to pay their home off more quickly; or, to use their home equity for paying credit cards or funding home improvements.
Refinances typically close more quickly than a purchase mortgage loan and can require far less paperwork.