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Replacing an existing mortgage with a new one, usually for a better rate or term.
Refinancing pays off your current mortgage with a new loan, typically to secure a lower interest rate, shorten the term, or tap home equity. Because it involves closing costs, the key question is the break-even point — how many months of payment savings it takes to recover those costs. It pays off only if you keep the loan past that point.
If refinancing costs $6,000 and saves $180 a month, the break-even is about 33 months.
Refinancing can save thousands over the life of a mortgage — or cost more than it saves if you do it at the wrong time. Here is how to calculate whether refinancing makes sense for your situation.
Read article →Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →