Question by hendrixfanhawaii: What does refinancing a mortgage mean?
Answer by Woody
It simply means getting a new mortgage loan at a lower interest rate to save money on your payments. Your lender has to go thru all the paperwork just as if you were buying a home – credit report, title search, appraisal, etc, etc. The lender charges you for all that stuff, but it pays itself back.
One rule of thumb that I have read is that to refinance if you can reduce your interest rate by one whole point (say, from 6% to 5%)
What do you think? Answer below!