Key takeaway

Refinancing your mortgage may have several potential benefits: It could reduce your monthly principal and interest payment or it could help you pay off your mortgage faster. You’ll want to review any costs associated with the refinancing, as well as the new interest rate of your loan, to determine if a refinance might make sense.

Depending on when you purchase your home, you may notice that interest rates go up or go down in the months or years after you secure your mortgage. Additionally, you may find that your credit score changes — perhaps it goes up based on smart financial decisions you’ve made around your debt.

If rates are lower, or you think your credit rating may qualify you for a better interest rate than you received when you first got your mortgage, you may consider refinancing. A refinance is essentially getting a new mortgage to replace the one you currently have. Read on for information on when refinancing your mortgage may benefit you.

Why refinancing your loan could make sense

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