Lower interest rates are often cited as a reason for refinancing a mortgage – but switching to a different loan type can also carry many benefits.
Refinancing to a different type of mortgage involves many of the same steps involved in obtaining your existing mortgage product: gather information about your income and debt obligations, apply for a loan pre-approval decision and obtain an appraisal. But some mortgages processes may involve a few new steps, as well – if you’re consolidating your mortgage loan with other debts, for instance.
Whatever loan option you choose, the whole process begins with a very important first step: determining the loan type that’s right for your goals and financial situation.
Before switching to a different type of loan, you first need to make sure the new loan will live up to your expectations. Will the new loan type deliver enough benefits to make financial sense? Is refinancing truly your best option for a goal like home remodeling or paying off debts?
This guide will help you arrive at a loan refinancing option – and decision – that works for you.