Refinancing is when you get a new mortgage to replace the original one.
Refinancing is done to allow a borrower to obtain a better interest term and rate.
The first loan is paid off, allowing the second loan to be created, instead of simply making a new mortgage and throwing out the original mortgage.
For borrowers with a perfect credit history, refinancing can be a good way to convert a variable loan rate to a fixed, and obtain a lower interest rate.
Use our calculator below and see if you should refinance your house or not!