Refinancing can be an opportunity to lower your monthly payments, pay off your loan quicker, reduce your overall interest expense or even get cash out. But be sure to weigh the costs and benefits first.
Similar to when you first purchased your home, refinancing your mortgage comes with fees and closing costs that could add up to 1% or more of the new loan. Determining your break-even point—when your monthly savings will cover the cost of refinancing—can help you decide if it’s worth it. Find out more about your different loan options here.