Financial markets are always changing, and personal finances may change as well.
Refinancing can allow you to take advantage of market conditions to save money, or extract the accumulated equity in your home to put to use for other needs.
A current home loan that carries a different rate or term can help you save money on your monthly payments, reduce cumulative interest paid over the life of the loan, increase cash flow and allow those resources to be directed to other purposes, such as debt reduction or the purchase of additional property.
Put your home’s equity to work
Another resource that may be put to better use is the accumulated equity in your current home. Refinancing with a new loan or line of credit allows that equity to be turned into cash, which may be reinvested into home improvements, paying down debt, other expenses, or for other discretionary needs.
In many situations, the new loan may be secured at no additional cost to you.
And here are some tips to keep in mind while house-hunting and while the loan is in process.