Refinancing your mortgage to better your financial situation

Refinancing a mortgage means replacing your existing mortgage with a new one, typically to get better terms, access home equity, or consolidate debt.

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Here’s a quick breakdown:

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✅ Common Reasons to Refinance:

• Lower your interest rate and reduce monthly payments.

• Switch mortgage types (e.g., from a variable to a fixed rate).

• Access home equity for renovations, investments, or major purchases.

• Consolidate high-interest debt (like credit cards) into your mortgage.

• Change your mortgage term (e.g., extend to lower payments or shorten to pay it off faster).
   

🔄 How it Works:

• You apply for a new mortgage with a lender (can be the same or different).

• The new mortgage pays off the current one.

• You may borrow up to 80% of your home’s appraised value (including the existing balance).

• There may be penalties if you refinance before your current term ends.

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💡 Example:

If your home is worth $600,000 and your mortgage balance is $350,000, you could refinance and borrow up to $480,000 (80% of $600K), giving you access to up to $130,000 in equity.

Let me know if you want help calculating your refinance options or comparing lenders.