How does refinancing work, and when should I consider it?
If you’ve heard people say “I refinanced my mortgage,” what they really mean is: they swapped out their old loan for a new one—with better terms.
Here’s the quick breakdown:
- The new loan pays off your current balance.
- You get new terms (lower rate, shorter length, or cash-out).
- You get new terms (lower rate, shorter length, or cash-out).
So when does it make sense?
✅ Rates have dropped since you first bought.
✅ Your credit score has improved.
✅ You need funds for renovations or debt consolidation.
Refinancing isn’t free, but it can save thousands over time. The key is to stay long enough to recoup the closing costs.
Example: If you save $200/month and pay $4,800 in costs, your break-even is two years. Stay longer, and the savings are real.
Even if you have been turned down by another lender, LENDERLINE has a loan program for you.
Call LENDERLINE at 1-888-661-7888 or complete this form to schedule a FREE mortgage consultation.