Home mortgage refinance loan options

What is Refinancing?

Refinancing is the process of replacing your mortgage loan with a new one to reduce monthly payments, lower your interest rates, or use equity for extra cash to make large purchases. Sounds like a win-win situation, right? We think so. There are two main types of refinance:

  • Rate-and-Term - This option allows you to refinance the remaining balance on your current loan, which means you can take advantage of lower interest rates or a shorter term. A rate-and-term refinance is ideal for anyone looking to pay off their mortgage sooner, build equity faster, or save money overall. And really, who wouldn't be interested in doing those things?

  • Cash-Out - This option involves taking out a mortgage greater than the remaining balance on your current loan; this allows you to use your equity as a cash advance to put toward home renovations or other expenses. A cash-out refinance is ideal for anyone who has built some equity and is looking to make major home improvements, pay off credit card debt, or make a large purchase.


Should I Refinance my Mortgage?

What a good question! Many homeowners wonder if a refinance might be a good decision. It's really a personal choice but, in general, it may be a wise move if you can lower your interest rates at all, and if you plan to stay in the home long enough to recover the closing costs associated with refinancing - referred to as the break-even point.

Been paying the same amount for years? Our Refinance Calculator can help you determine what your new monthly payment might be.


Get started by finding a mortgage loan professional in your area!


All loan requests are subject to credit approval as well as specific loan program requirements and guidelines. With Adjustable Rate Mortgage loans, the rate is variable and may increase or decrease every year after the initial fixed rate period based on changes to an index. This could result in an increase in the monthly payment.