Mortgage8 min read

Mortgage Refinancing Guide 2025: When It Makes Sense

January 17, 2025

Mortgage Refinancing: Is It Right For You?

Mortgage refinancing can help you lower your monthly payment, shorten your loan term, or tap into your home's equity. But is it the right move for your situation?

When Refinancing Makes Sense

  • Interest rates have dropped since you got your original loan
  • Your credit score has improved significantly
  • You want to switch from an adjustable-rate to a fixed-rate mortgage
  • You want to shorten your loan term
  • You need cash for home improvements or other expenses

Current Mortgage Rates (2025)

Mortgage rates fluctuate daily. As of early 2025, rates are competitive, making it a good time to explore refinancing options.

Types of Refinancing

  • Rate-and-Term Refinance: Lower your rate or change your loan term
  • Cash-Out Refinance: Borrow against your home's equity
  • Cash-In Refinance: Pay down your loan to get a better rate

Refinancing Costs

Refinancing typically costs 2-5% of your loan amount in closing costs. Make sure the savings justify the costs.

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