A mortgage refinance replaces your existing home loan with a new one, often to secure a lower interest rate, reduce monthly payments, or access home equity. To refinance, prepare your finances by checking your credit score and calculating your debt-to-income ratio. Choose the type of refinance that suits your goals, shop for lenders, and consider locking in your interest rate. An appraisal is required, and closing costs typically range from 2% to 6% of the loan balance. Refinancing can be beneficial if interest rates have decreased or your credit score has improved.
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