When to Refinance Your Mortgage

Refinancing a mortgage involves replacing an existing loan with a new one, often to secure a lower interest rate, shorten the loan term, or access home equity. Homeowners should consider factors like home equity, credit history, and refinancing costs before proceeding. A lower interest rate can significantly reduce monthly payments, while cash-out refinancing allows access to equity for various expenses. However, refinancing can incur costs, so it's essential to evaluate the long-term benefits and personal financial situation before making a decision.