Refinance Loan

Refinancing a loan, including residential mortgages, involves replacing an existing loan with a new one to secure better terms. This can include obtaining a lower interest rate, reducing monthly payments, or adjusting the loan term. Common reasons for refinancing a residential mortgage include taking advantage of lower interest rates, lowering monthly payments, switching from adjustable to fixed-rate mortgages, tapping into home equity, or consolidating debts. Borrowers typically need to go through a similar application process as when obtaining the original loan and should carefully weigh the costs and benefits before deciding to refinance.