KNOWLEDGE CENTER

Refinancing may be undertaken to reduce interest costs (by refinancing at a lower rate), to pay off other debts, to reduce ones periodic payment obligations (sometimes by taking a longer-term loan), to reduce risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.

Homeowners who are currently in adjustable rate mortgages can benefit tremendously by refinancing their ARM mortgage to a fixed rate.

Qualifying for a Mortgage Refinance depends on a variety of factors, including your credit score, whether or not you've made any late payments on your current mortgage, and how much equity you have in your current property.

The costs of a mortgage refinance include a) Origination costs - points and other settlement costs, on the new mortgage only; b) Monthly payments of principal and interest, on both mortgages; and c) Lost interest on (a) and (b), also on both mortgages. Cost offsets on both mortgages are tax savings, and reduction in the loan balance.

Refinancing refers to applying for a secured loan intended to replace an existing loan secured by the same assets.

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