Refinance
Refinancing a loan involves replacing your existing mortgage with a new one, typically to secure better terms or rates. Homeowners often choose to refinance to take advantage of lower interest rates, which can reduce monthly payments and save money over the life of the loan.
Another reason to refinance might be to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, providing more stability in payments. Some may also refinance to tap into home equity through a cash-out refinance, which allows them to borrow against the equity they’ve built up in their home.
Frequently Asked Questions
A refinance loan replaces an existing loan with a new one, usually to secure better terms—like a lower interest rate, smaller payments, or a shorter term. This option can help save on interest or access home equity, though fees may apply.
Refinancing can lower your monthly payments, reduce your interest rate, shorten your loan term, or allow you to access your home’s equity through a cash-out refinance. In Miami’s competitive market, refinancing may also improve your loan’s terms to align better with current rates.
Closing costs usually range from 2% to 5% of the loan amount. These costs can vary based on factors like lender fees, appraisal costs, and title insurance, so it’s essential to get an estimate from your lender and weigh this against the potential savings from refinancing.