Typically the goal when refinancing your home mortgage is to replaces your existing mortgage loan with another loan for the same amount of principal to repay, but at a lower interest rate. Doing this will reduce your monthly mortgage payment and free-up cash that can use the cash for whatever you want - home improvements, a new car, or even a vacation!

If you have built up equity in your home, mortgage refinancing will allow you to not only reduce your interest rate but also change the term of your mortgage loan, or consolidate your debt. Instead of collateral, home mortgage refinance allows you to incorporate our debt into the amount owed. One monthly payment, one low interest rate!

Mortgage Refinance Rates

With traditional mortgage refinancing, the most often cited rule of thumb is that the interest rate for your new mortgage loan should be about 2 percentage points below your current mortgage rate in order for the mortgage refinance to make sense. However, with newer low and no cost refinancing programs, it can be worth your while to refinance to obtain a smaller reduction in interest rates. Quickly compare mortgage refinance rates to get an idea of how much you can save.

Make sure you understand what the underlying closing costs will be on your new mortgage loan, in addition to the mortgage rate before making your home mortgage refinance decision.