What is a Mortgage Refinance?
Refinancing a home involves taking out a new loan to pay off your original mortgage and replacing it with a loan more beneficial to you. Refinancing benefits can include lower interest rates, overall savings, shortened mortgage terms, and debt consolidation. The refinancing process requires completing a new loan application and sometimes a home appraisal and inspection. During the approval process, lenders examine the homeowner’s debt, income, job history, and credit score.