A refinance is the process of obtaining a new mortgage loan to replace an existing one. When you refinance, you work with a lender to pay off your current mortgage with a new loan that has different terms and conditions. The new loan can help you obtain a lower interest rate, change the length of the loan term, or change the type of loan (such as switching from an adjustable-rate mortgage to a fixed-rate mortgage).

Refinancing can be beneficial if it allows you to obtain a better interest rate, reduce your monthly mortgage payments, or access equity in your home. It can also be used to consolidate debt or make home improvements. However, it’s important to carefully consider the costs associated with refinancing, such as closing costs and fees, to determine if it’s the right choice for your financial situation.

Overall, a refinance can be a useful tool for homeowners who want to take advantage of lower interest rates or make changes to their mortgage terms. Working with a mortgage broker, like Arrive Realty & Finance, can help you navigate the refinancing process and choose the best option for your needs.