What is refinancing? – David Reecher
Refinancing is the process of paying off one loan to get another with better terms. There are many reasons borrowers may refinance: lower interest rates, improved credit, debt consolidation, or to decrease home equity to free up cash. Loan refinancing includes fees for appraisals and title insurance, so it’s important to talk with a lender about the costs and benefits of refinancing. If a borrower plans to stay in a home for a long time, it might make sense to refinance. But if they want to sell in the next couple of years, it might be best to wait until they buy their next home to get a new loan.