Refinance

Real Estate

Refinancing replaces an existing mortgage with a new one — typically to lower rate, change term, or extract cash. Rate-and-term refi: lower interest rate or change duration. Cash-out refi: increase loan to receive cash difference. Break-even analysis: closing costs / monthly savings = months to recover costs. Refinance only if staying long enough to recoup costs. Streamline refis (FHA, VA) reduce documentation requirements. Refinancing extends loan term — saves interest rate but may increase total interest paid if reset to 30 years. Shop multiple lenders within 14-45 days for hard inquiry consolidation. Mortgage rates change daily; lock rates when comfortable with the spread.