If you own a home, you know about monthly mortgage payments – a sizeable sum with considerable impact on your month-to-month finances. You’re also likely used to balancing this with your other payments, savings and debts. As one of your largest investments, refinancing your home can provide you with many options and benefits.
Refinancing means that you pay off one loan with the proceeds from a new loan using the same property as security. Some people refinance to take advantage of lower interest rates, while others may do so to get money for a home improvement project. Whatever your goal, you’ll want to make sure the home refinance option you choose fits into your larger financial plan and will truly benefit you in the long run.
Understanding your options is the first step to making an informed decision.