Deciding to refinance a mortgage is a big financial decision and it takes more than the decrease in interest rates to urge you to avail of another loan. You must understand your options and the considerations that go with each alternative.
What is refinancing?
Refinancing your mortgage means that you will go into an agreement of a new loan to pay the existing one. This represents a new loan, with new terms and even a new lender. It has a constant interest rate which is hopefully lower than the previous one. The terms can be shorter or longer, and sometimes, the interest is low enough that the terms may not need any changes at all.
There are a variety of options available to help you make the right mortgage decision that could leave you with more dollars in your pocket.