What happens when you refinance a mortgage?

Answer Refinancing a mortgage is when homeowners replace their existing loans with one that is more favorable to them. Ideally, the longer you plan to live in your home, the more sense it will make to ref... Read More »

Top Q&A For: What happens when you refinance a mortgage

What Happens to the Principle When You Refinance?

The refinancing process is intended to provide the homeowner with a lower interest rate. In turn, the reduced interest rate lowers the monthly mortgage payments. The principal, however, remains unc... Read More »

When is a good time to refinance a mortgage?

On One Hand: When Rates Drop at Least 1 PercentWhen interest rates drop at least 1 full percentage point from the borrower's current mortgage interest rate, a borrower should look into a mortgage r... Read More »

Is there a rule of thumb for when to refinance a mortgage?

There is no hard and fast rule that dictates when homeowners should refinance their mortgages. Lower interest rates, a different type of mortgage loan and debt consolidation are all valid reasons f... Read More »

What Happens When You Default on a FHA Mortgage?

The Federal Housing Administration (FHA) issues insurance against mortgage default. In other words, an FHA mortgage is protected by the federal government in the event that the homeowner cannot con... Read More »