Illustration: Andy Rementer
A Guide to Refinancing Your Mortgage
Buying a house usually means years of monthly payments to a bank. But the terms are surprisingly negotiable — and trading your existing rate for a lower one can save you thousands of dollars.
If you bought a home in the US in the past few years, a period when mortgage rates surged to their highest levels in more than two decades, you probably had a plan: “Date the mortgage rate and marry the house.” The time to break up with your current rate for a lower one may be coming — but you’ll want to read the fine print closely before autographing a new deal.
How can homeowners ditch their current rates? By refinancing their mortgage. A mortgage refinance, or “refi” for short, allows homeowners to negotiate new loan terms, including a lower interest rate. If lenders are offering lower rates than your existing one, you may be able to snag a lower rate and shave thousands of dollars off your annual payments.