Refinancing is when a homeowner replaces their existing home loan with a new one under different terms, and hopefully, at a lower interest rate. Besides seeking a lower interest rate, and thus a lower monthly payment, another reason to refinance is to get cash out. A cash-out refinance, which is offered at a higher rate than a regular refi, is commonly used to pay for home remodeling or to consolidate other high-interest debts, such as credit cards. Another popular motive for refinancing is to reduce risk by switching from an adjustable-rate mortgage to a fixed-rate mortgage.
Check current home refi rates at local bank or credit union.