Most people who buy a home finance it with a mortgage. Then time passes, life happens, and you find that your original mortgage no longer fits your needs.
That’s when you may want a refinance. A refinance is exactly what it sounds like: You take out a new mortgage to replace your existing mortgage. It may be a lower rate, a shorter term, a higher amount (if your home value has risen), or a different type, but your goal is to replace one home loan with another that meets your current requirements.
When should you refinance your mortgage?
A lower interest rate may be the most common reason for a refinance, but it’s hardly the only one. Yes, saving money is a major trigger, but there are so many other motivations.
Perhaps you’d like to fund a renovation project or take cash out to pay off higher-interest debt. Maybe you’ve reached the point where you’ve paid down an FHA loan enough that you can refinance to stop paying mortgage insurance. A CCM loan officer can help you determine if a refinance is right for you.
