Refinancing means paying off your current mortgage by obtaining a new one. People refinance for many reasons, some include to lower monthly payments, to remove a prepayment penalty, or to get a different loan type or length.
Customers may also wish to get cash out of their home. They do this by borrowing against the equity in their home and receive cash in exchange. People can use this cash to pay off credit cards, to pay for college tuition, to pay medical expenses, or even purchase another home.
Would Refinancing Help You?
If you own your own home, and if your home is worth more than you owe on it, then you have some equity. If, in addition, your monthly payments on your debt obligations (e.g. mortgage payment, credit card payments, car payments, etc.) are hard to make each month, (or they can handle, but would prefer your monthly output to be lowered) then refinancing may help. Also, if you need money for a specific purpose (e.g. college tuition, wedding, medical expenses, etc.), your home equity may be able to help you out.
Find out if you are eligible for refinancing,