How and Why to Refinance Your Mortgage

Definition of mortgage refinance

A mortgage refinance replaces your current home loan with a new one. Often people refinance to reduce the interest rate, cut monthly payments or tap into their home’s equity. Others refinance a home to pay off the loan faster, get rid of FHA mortgage insurance or switch from an adjustable-rate to a fixed-rate loan.

Let’s consider some important initial aspects of refinancing a mortgage — and then run through the process step by step.