When you refinance the mortgage on your house, you’re essentially trading in your current mortgage for a newer one, often with a new principal and a different interest rate. You will use the newer mortgage to pay off the old one at closing, so you’re left with just one loan and one monthly payment.


There are a few reasons people refinance their homes.

  1. You can do a cash-out refinance to make use of your home’s equity.
  2. To do rate-and-term refinanceto get a better interest rate and/or lower monthly payment.
  3. To change a mortgage type. Like change an ARM loan to a low rate fixed-rate mortgage, or refinance a FHA loan to a conventional loan.
  4. To remove another person from the mortgage, which often happens in the case of divorce.
  5. To add someone to the mortgage.

The refinancing process is similar with home buying process but less complicated. Please contact us for a free consultation to determine the possibility and potential rate for a refinance.