Refinancing replaces your existing mortgage with a new one. It can lower your rate, change your term, remove PMI, or access your equity.
When Refinancing Makes Sense
When rates drop at least 0.75-1% below your current rate. When you want to switch from an ARM to a fixed rate. When your home has appreciated enough to eliminate PMI.
Rate-and-Term vs. Cash-Out
Rate-and-term refinancing gets you a better rate or different term. Cash-out refinancing replaces your mortgage with a larger one and gives you the difference.
Keys Considerations
Strong Keys property values may make it easier to reach the 20% equity threshold needed to eliminate PMI. Cash-out refinancing can fund property improvements that further increase value.