Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

Full Bio →

Reviewed by Joel Ohman
Founder, CFP®

UPDATED: May 24, 2011

Advertiser Disclosure

Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.

Whether the interest rate initially received on a home loan is acceptable or seems less appealing than borrowers had hoped, the potential for a better rate at some point over the life of a home mortgage is a strong possibility. Mortgage Refinancing allows borrowers to effectively revise the terms of their loan, which includes not only the interest rate, but the repayment schedule as well.

[semform]Seeking a lower interest rate when either economic conditions push rates below regular levels or when personal circumstances are likely to contribute to a better deal can lead to better control over personal credit and debt situations. Both fixed-rate and adjustable home loans may be refinanced, though different lenders have individual restrictions on when and how home loan refinancing can take place.

Some refinancing agreements may result in lower monthly payments, allowing homeowners to gain relief from high regular expenses. Such arrangements may increase interest rates or the amount of time over which a mortgage is to be repaid. By contrast, seeking a lower interest rate through home mortgage refinance loans can lead to higher monthly payments with shorter repayment terms.

Regardless of the specific goals of a given refinancing effort, seeking approval and completing paperwork is similar to the processes experienced by borrowers during the original home mortgage finalization. Employment and income information along with credit checks and other personal financial data is likely to be required for refinancing.

In addition to these considerations, an essential part of home loan refinancing revolves around the fact that mortgage lenders assign fees to refinancing just as they do on an original home mortgage loan. This makes the choice to refinance a decision that can impact both short- and long-term finances.