When to Refinance
Mortgage refinancing could equal lower monthly payments.
The Mortgage Refinancing Equation
When refinancing, you pay some of the same costs you paid when you closed on your existing mortgage. Your new monthly payments could be low enough to make up for those costs within a reasonable amount of time.
Sensible Choices
Lower monthly mortgage payments are not the only reason to refinance. A refinanced mortgage could work in your favor in a number of ways.
| Current Mortgage | Refinanced Mortgage | Possible Result |
|---|---|---|
| 30-year fixed | 30-year fixed, lower interest rate | Lower monthly payments |
| 30-year fixed | 40-year fixed | Lower monthly payments |
| 30-year fixed | 15-year fixed, lower interest rate | Build equity, pay off loan faster |
| 30-year fixed | 30-year adjustable | Lower payments initially |
| 30-year adjustable | 30-year fixed | Predictable monthly payments, could be lower |
