What Is Loan Refinancing?
Loan refinancing involves taking out a new loan, usually with more favorable terms, in order to pay off an old one. Terms and conditions of refinancing vary widely. Refinancing is more commonly associated with home mortgages, car loans, or student loans. In the case that old loans are tied to collateral (assets that guarantee loans), they can be tr...
Reasons to Refinance
Save Money—If a borrower negotiated a loan during a period of high interest rates, and interest rates have since decreased, it may be possible to refinance to a new loan with a lower interest rate. This saves money on interest costs for the borrower. It is also possible to refinance when a borrower's credit score improves, which may qualify them fo...
Refinance Mortgages
Refinancing a mortgage may come with different benefits such as getting a lower rate, switching from an adjustable rate mortgage (ARM) to a fixed mortgage, consolidating combo mortgages or other debt, removing someone from a loan (example being ex-spouse), and more, depending on the type of refinance. Several types are explained in detail below. Ca...
Refinance Student Loans
Before considering refinancing student loans, in the U.S., different repayment plans are available for those struggling to meet their payments; borrowers can change their standard repayment plan (10 years) to a plan such as one that is income-based (payment based on income), graduated (gradual increase in repayment), or extended (longer term). Stud...
Refinance Car Loans
It is possible to refinance a car loan in order to increase the length of the loan, thus reducing the size of the monthly payments. Although this gives borrowers a bigger window to pay off their car loans, it typically increases the cost of the loans because more interest will be paid. When refinancing, beware of "upside-down" auto loans, which ref...
Refinance Credit Cards
While credit card debt differs from the other loans mentioned in that it is a revolving form of credit, it can also be refinanced. One of the easiest ways to do so is to open a new balance transfer credit card. A balance transfer is the process of transferring high-interest debt from one or more credit cards to another card with a lower interest ra...
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Refinance Calculator
This free refinance calculator can help you evaluate the benefits of refinancing to help you meet your financial goals such as lowering monthly payments, changing the length of your loan, cancelling your mortgage insurance, updating your loan program or reducing your interest rate. lgo algo-sr relsrch fst richAlgo" data-6e3="645e6b966506c">www.zillow.com › mortgage-calculator › refinanceRefinance Calculator - Should I Refinance? | Zillow www.zillow.com › mortgage-calculator › refinance Cached