While low-interest rates helped create a booming housing market in 2020, the impact on mortgage refinancing has been unforeseen since 2003, according to research from Freddie Mac.
Refinancing your home doesn’t come without its share of expenses. Just as you would expect with a purchase loan, refinancing requires borrowers to pay certain fees on the day of closing.
Your credit has a huge role in your refinance journey. Lenders use it to determine your qualifying interest rate, as well as certain closing costs that may be waived for higher scores.
The main reason homeowners choose to refinance is to save money on their monthly payments, and sometimes, this can lead to a reduction in the life of their loan.