How to refinance your mortgage: When's the right time?

How to refinance your mortgage: When's the right time?

A mortgage refinance replaces your current home loan with a new one.

People often refinance to reduce the interest rate, cut monthly payments or tap into their home’s equity.

You should consider a refinance if you want to lower your interest rate or if you’re planning to stay in your home for at least a few years.

Here's how you can tackle the refinance process.

1. Set your goal and understand why you want to refinance is it to reduce monthly payments or shorten the loan term.

2. Shop for the best mortgage refinance rate. Keep an eye on fees, too.

3. Apply for a mortgage with three to five lenders.

4. Choose a refinance lender who is trustworthy and responsive.

5. Lock your interest rate so it can’t be changed during a specified duration.

6. Close your refinance loan.