Refinancing replaces your current mortgage with a new one and may help lower your interest rate, reduce monthly payments, change loan terms, or move from an adjustable rate to a fixed rate. It can also be a smart way to access home equity. Explore your options with clear guidance and competitive rates.
Refinancing replaces your current mortgage with a new loan that offers better terms, lower interest rates, or access to home equity. Homeowners refinance to reduce payments, switch loan types, or pay off their mortgage faster.
Homeowners looking to lower their interest rate, reduce monthly payments, shorten their loan term, consolidate debt, or access cash for home improvements can benefit from refinancing. If your home has increased in value, refinancing can also help you eliminate private mortgage insurance (PMI) or secure better loan terms.
Refinancing involves replacing your current mortgage with a new one. Lenders evaluate your credit score, home equity, loan-to-value ratio (LTV), and debt-to-income ratio (DTI) to determine eligibility. The process is similar to applying for a new mortgage and typically includes an appraisal and underwriting.
Refinancing options include rate-and-term refinance, cash-out refinance, cash-in refinance, streamline refinance (FHA, VA, USDA), and debt consolidation loans. Homeowners can switch from adjustable-rate to fixed-rate mortgages or vice versa, depending on financial goals.
Refinancing can help homeowners save money by securing lower interest rates, reducing monthly payments, and shortening loan terms. A cash-out refinance allows homeowners to tap into home equity for renovations, debt consolidation, or major expenses.
If you have built equity in your home, improved your credit score, or want better loan terms, refinancing may be the right choice. A mortgage specialist can help you determine the best refinancing option based on your financial goals.
Jon Shrum, President of KMC Financial and Team Shrum, helps homeowners refinance with clarity and confidence. He compares options across multiple lenders to find competitive rates and terms, explains the true savings, and makes sure the numbers align with your goals. With honest guidance and a smooth process, Jon helps you get more from your mortgage.
Refinancing can help you lower your interest rate, reduce monthly payments, change loan terms, or access home equity. These FAQs explain how refinance loans work, when it may make sense, what it costs, and how to decide if refinancing fits your long term financial goals.
A refinance replaces your current mortgage with a new one, often to get a better interest rate, change the loan term, or switch from an adjustable to a fixed rate. Many homeowners refinance to improve cash flow or save money over time.
The right time depends on your current rate, how long you plan to stay in the home, your credit profile, and your financial goals. If rates drop or your credit improves, refinancing may help you lower your payment or pay off your loan faster.
Savings depend on your new rate, loan term, closing costs, and remaining balance. Some homeowners focus on monthly payment savings, while others look at total interest over the life of the loan. A quick comparison can show whether the numbers make sense.
Credit requirements vary by loan type, but stronger credit typically helps you qualify for better refinance rates and terms. Even if your score is lower, you may still have options depending on your equity and overall profile.
Refinance closing costs may include lender fees, appraisal, title, escrow, and prepaid items. Many homeowners budget around 2 percent to 5 percent of the loan amount. In some cases, you may be able to roll costs into the loan or use lender credits.
A refinance usually takes about 3 to 6 weeks from application to closing, depending on documentation, appraisal timing, and underwriting. Being organized with income, asset, and property documents can help keep things moving.
Yes. Your current home value plays a big role in refinance options and rates. If your value has increased, you may qualify for better terms or access more equity. If it has decreased, options may be more limited, but programs may still be available.
