If you’re a homeowner with an existing mortgage, you might think you’re all set. But just because you have a mortgage locked in doesn’t necessarily mean it’s the best mortgage for your situation.
Refinancing is a cost-effective and logical option in many cases, particularly in a market with low interest rates.
What Does it Mean to Refinance?
Refinancing is essentially the process of replacing your existing mortgage on a property with another mortgage that has different and more advantageous terms.
There are a variety of reasons to refinance—and we’ll discuss many of them here in this article—but it’s almost always used as a way to save money. Sometimes those savings come upfront, while other times the savings are gradually realized several years down the road….
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