Change my mortgage
Your current situation may not be the same as when you initially purchased your home. Refinancing allows you to adjust your mortgage to better fit your current needs. When you refinance you get to start from scratch with a new mortgage (without losing the equity you’ve built up in the old one, of course). You can change your term, get a better interest rate, change the mortgage type, etc. Each yields different results.
Refinancing to meet your needs
Take advantage of lower interest rates to save money
If your current mortgage rate is higher than the interest rates lenders are offering today, refinancing can make real financial sense. Refinancing could reduce your monthly interest costs and save you both short-term and long-term money. If market interest rates are 1/2% to 5/8% lower than your current interest rate, you may want to consider refinancing. Use our refinancing calculator to see if refinancing makes sense for you. Also, your credit profile may have improved since you took out your current mortgage and you therefore might be eligible for better credit terms today.
Extend your term to lower monthly payments
If interest rates aren’t lower than they were when you got your original mortgage, you can still lower your monthly obligation by extending your repayment period. If you change from a 30-year to a 40-year mortgage loan for example, you will have to repay the same principal, but over an additional 10 years. This can make a big difference in your monthly cash flow.
Get a shorter term
By changing to a shorter-term mortgage, you can effectively save a lot of money. While it might increase your current monthly mortgage payments, it can help you save thousands on interest down the road. You can be finished paying off your mortgage loan in 15 years instead of 30 and save all of those years of interest payments. Shorter loan terms also typically carry lower interest rates.
Change to a different mortgage type
Fixed rate mortgage? Adjustable rate mortgage? Interest only mortgage? What may have been right for you years ago, might not be the best mortgage for you today. By refinancing you can change to the type of mortgage that really works for you. Learn about the different mortgages available in our mortgage comparison section.
