Refinancing means replacing your current mortgage with a new one—ideally with a lower rate or better terms. It can:

• Reduce your monthly payment

• Shorten your loan term

• Eliminate PMI

• Tap into home equity (cash-out refinance)

📉 Refinancing usually makes sense when:

• You can lower your interest rate by 0.75% or more

• You’ve improved your credit score

• You plan to stay in the home long enough to recoup closing costs

🔍 Always compare total costs vs. monthly savings to ensure refinancing works in your favor.