Home: Refinance A

: Determine the current market value of your property.

: Switch from an adjustable-rate to a fixed-rate mortgage. Closing Costs : Can range from 2% to 5% of the loan amount.

Calculate the break-even point by dividing the total closing costs by your monthly savings. For example, if closing costs are $3,000 and you save $100 a month, you must stay in the home for 30 months to recover the costs. refinance a home

: Determine if you want a lower payment or a shorter term.

You pay a lump sum toward your loan balance during the refinance. This lowers your loan-to-value ratio and can help you secure a better rate or eliminate mortgage insurance. Pros and Cons : Determine the current market value of your property

This is the most common type of refinancing. It changes the interest rate, the loan term, or both, without advancing new money. Cash-Out Refinance

This option allows you to borrow more than you owe on your current mortgage. You receive the difference in cash to use for home improvements or debt consolidation. Cash-In Refinance Calculate the break-even point by dividing the total

: Sign the new loan documents and pay closing costs. Types of Refinancing Rate-and-Term Refinance