Mortgage refinancing isn’t a new concept, but whenever there’s a significant drop in mortgage rates, it’s not unusual for mortgage lenders to receive an influx of applications. Refinancing is the process of attaining a new mortgage to pay off an existing mortgage. The new mortgage comes with entirely new terms, which are typically better for the homeowner.
There are good reasons to refinance a mortgage loan. Perhaps you’re cash-strapped and desperately need to reduce your monthly payment to avoid foreclosure. Or maybe you agreed to a bad mortgage loan and want to acquire better terms.