What refinancing means
Refinancing replaces an existing mortgage with a new loan. The new loan can have a different rate, term, payment structure, balance or other features.
Common reasons to refinance
Borrowers may refinance to seek a lower rate, change the loan term, change loan type, alter monthly payments or access equity where available. Each objective creates different tradeoffs.
Costs matter
A lower rate does not automatically make refinancing worthwhile. Closing costs, fees and the time you expect to keep the new loan should be included in the comparison.
Break-even thinking
A simple break-even estimate compares upfront refinancing costs with expected monthly savings. It is only one measure; extending the loan term or changing the balance can also affect total interest over time.
Model your scenario
Use the Refinance Calculator, review mortgage rate data, and compare amortization with the Amortization Calculator.
Refinancing costs and eligibility vary. This guide provides general educational information only.