About Mortgage Refinancing

Many people are taking advantage of low interest rates to refinance their homes. Mortgage refinancing is replacing a current mortgage with one that has more favorable rates and terms. People refinance for a number of reasons including lower interest rates, consolidating debt and taking out additional equity from their home. However you need to be careful when considering refinancing a mortgage to make sure the benefits of a new home loan outweigh the additional costs associated with mortgage refinancing.

What is a Mortgage Refinance?

When a mortgage is refinanced, the original mortgage is paid off using the funds from the new mortgage. If more money is borrowed than needed to pay off the first loan, it is called a cash-out mortgage and the remaining funds go to the homeowner. Essentially you are securing a new home loan with different rates and terms. Mortgage refinancing is very popular right now since interest rates are historically very low. Some mortgage holders are taking advantage of low interest rates by switching from an adjustable-rate mortgage to a fixed-rate mortgage while others are just lowering their existing rate.

How much does it cost to Refinance?

This really depends on a number of variables including what lender you choose however many closing costs are common to all mortgage refinance transactions. Mortgage companies advertise many different rates however these are often manipulated to showcase the very best rate available which may include a lot of fees and depending on your needs (including the intended time you plan on owning the home) paying these fees can often be disadvantageous. Learn more about the common closing costs involved with mortgage refinancing, how to read the good faith estimate and more in our mortgage refinancing guide here.

Who are the Best Mortgage Companies?

There are hundreds of mortgage companies around (thousands if you include mortgage brokers) and choosing the best mortgage company takes a little time. All homeowners have unique needs and some mortgage companies specialize in different areas of lending than others. Although it’s almost impossible to classify who the best mortgage companies are for any particular individual we can provide you with a list of items to watch out for and help identify the less than stellar mortgage companies round. Learn how to compare mortgage companies in our mortgage comparison section today.

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Mortgage Calculators

• Mortgage Calculator
• Refinance Calculator
• How much can you afford?
• Closing Costs 101

Mortgage Guide

• Types of Mortgages
• Choosing a Lender
• How much can you save?
• Common Questions

Mortgage Refinancing 101

• How to find the best rates
• The cost of refinancing
• The Good Faith Estimate
• How to cash out equity