Refinancing

Cash in Your Chips

What is Refinancing?

Refinancing is getting a new mortgage to replace an old one, allowing a borrower to get a better interest rate and term.

Although commonly associated with home loans, it can also be applied to student loans.


Podcast: Mortgage


Pros and Cons of Refinancing



Types

Rate-and-term —when you refinance your remaining balance for a lower interest rate and term you can afford

Cash-out —take out a new mortgage for more than you owed, and use the difference to pay off remaining debt

Refinancing Tips

  • Know your credit score; the higher your credit score, the better mortgage refinance interest rate you’ll be offered.
  • Research your home’s current market value
  • Look for the best mortgage rate
  • Know your all-in cost; many fees are associated with refinancing, such as appraisal fee, document-processing fee, and credit report charge

Calculator: How much will you have at retirement?


Works cited

http://www.bankrate.com/finance/mortgages/when-to-refinance-your-mortgage-1.aspx

https://enlightenme.com/top-10-facts-about-student-loan-refinance/

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