Home refinance refers to the process of obtaining a new mortgage on a property that you already own, with the aim of replacing your existing mortgage. This is usually done in order to secure a better interest rate, lower monthly payments, or to access the equity that has built up in the home.
When you refinance your home, you essentially pay off your existing mortgage with a new one that has different terms and conditions. This new mortgage will have its own interest rate and payment schedule, which could be more favorable than your previous one. Refinancing can be a way to save money on your monthly mortgage payments, reduce the total amount of interest you pay over the life of your loan, or even access cash that you can use for other purposes.
It’s important to note that refinancing your home can have costs associated with it, such as closing fees, appraisal fees, and other charges. It’s important to consider these costs when deciding whether or not to refinance, and to calculate whether the potential savings outweigh the expenses of refinancing.