Introduction
Refinancing a mortgage refers to the process of replacing an existing mortgage with a new one, typically done to obtain better loan terms and save money over the life of the loan. Refinancing can be a smart financial move for homeowners, especially when interest rates are low or if there has been a significant increase in property value. In this article, we will explore various refinance routes that can help homeowners save on their mortgages.
1. Traditional Refinance
A traditional refinance involves taking out a new mortgage loan with different terms to replace the existing loan. Homeowners can choose to refinance into a loan with a lower interest rate, shorter term, or both. By lowering the interest rate, homeowners can reduce their monthly mortgage payments and potentially save thousands of dollars over the life of the loan.
