How and Why to Refinance Mortgage

October 3, 2022

By : Quick Insurance Guru

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Mortgage refinancing can save you money. Set your home refinance goal, then compare rates and fees.

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By : Quick Insurance Guru

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A mortgage refinance replaces your current home loan with a new one.

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By : Quick Insurance Guru

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Often people refinance to reduce the interest rate, cut monthly payments or tap into their home’s equity.

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By : Quick Insurance Guru

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Others have a choice of refinance a home to help pay the loan faster.

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By : Quick Insurance Guru

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You're responsible for paying for the mortgage, when you buy a home. The money goes to the home seller. 

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By : Quick Insurance Guru

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When refinancing a home, you get a new mortgage.

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By : Quick Insurance Guru

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Instead of going to the home’s seller, the new mortgage pays off the balance of the old home loan.

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By : Quick Insurance Guru

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Although you must meet the lender's requirements for the original mortgage, mortgage refinancing requires you to meet them.

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By : Quick Insurance Guru

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You file an application, go through the underwriting process and go to closing, as you did when you bought the home.

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By : Quick Insurance Guru

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Reduce the monthly payment.

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When your goal is to pay less every month, you can refinance into a loan with a lower interest rate.

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Tap into equity.

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When you refinance to borrow more than you owe on your current loan, the lender gives you a check for the difference.

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Pay off the loan faster. 

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When you refinance from a 30-year mortgage into a 15-year loan, you pay off the loan in half the time.

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