When Does It Make Sense to Refinance Your Mortgage

If your current mortgage's interest rate is high, there maybe a cheaper solution in the market if you refinance your mortgage. G-Stock Studio/ShutterStock

If you’re a homeowner with an existing mortgage, you might think you’re all set. But just because you have a mortgage locked in doesn’t necessarily mean it’s the best mortgage for your situation.

Refinancing is a cost-effective and logical option in many cases, particularly in a market with low interest rates.

What Does it Mean to Refinance?

Refinancing is essentially the process of replacing your existing mortgage on a property with another mortgage that has different and more advantageous terms.