Take advantage of the opportunity to lower your monthly payments or to borrow against the equity in your home to cover other expenses

Refinancing your current mortgage at a lower interest rate could improve your cash flow by reducing your current mortgage payment. Or you could borrow money against the equity in your home in order to pay for home improvements, school loans or to cover other expenses.

Deciding if a refinance is a good choice for your financial situation

If you want to increase cash flow, refinancing to lower your monthly payment could help. See what may work for you by using the Refinance Calculator.

The effect on your mortgage payment

Your monthly payment could be reduced if you refinance. The Refinance Calculator will give you a good idea of what your new monthly payment would be.

Shortening the length of your loan term

As long as you qualify, you may be able to reduce your mortgage loan term to pay off your mortgage more quickly, without greatly affecting your monthly payments. This allows you to reduce the amount of interest you pay over the life of the loan.

Refinancing to cover other purchases

You can refinance and borrow against the equity in your home for home improvements or other expenses.

Amount of home equity you can borrow against

You can generally use up to 90 percent of the appraised value of your home. The actual amount is based on the value of the home and what you currently owe, subject to applicable state laws.

Refinancing without having built up much equity

You can borrow against up to 90 percent of the current appraised value of your home if you want to refinance your house for a new rate and term. A reappraisal of your property may be required.

Additional costs of refinancing

There are closing costs associated with refinancing your loan, which may include points and processing fees. You may have the option of including these costs in the loan amount to reduce the money you have to spend at closing. To evaluate your options, use the Refinance Calculator.