Here are some of the most common reasons you might consider refinancing, which is replacing the mortgage you have with a new one.

• Use your home’s equity to take cash out. Equity is the difference between what your home is worth, and what you still owe.
• Change the length of your mortgage. If you want to be mortgage-free faster and pay less interest, you could change your 30-year loan term to a 15-year.
• Consolidate debt. If you have a lot of high-interest credit card debt, you can use your home’s equity to pay it off.
• Change your loan type, such as go from FHA to a conventional loan.

Whatever you goal, we can help you understand the costs of refinancing and whether it makes sense for you.

Refinancing the mortgage on your house means trading in your current mortgage for a new one. Usually refinancing changes your interest rate and your monthly payment. We use the new mortgage to pay off the old one.

Refinancing isn’t very different from getting a mortgage to buy a home. You’ll apply, provide documents, get an appraisal, and close on your loan. The fees and costs will be similar too. You may be able to close right from your own home.

Mortgage refinance rates are determined by multiple factors that fall into two categories.

• Economic: Factors like the stock market, the Federal Reserve, inflation and the housing market all affect mortgage rates.
• Personal: Your credit profile, how much debt you have compared to your income, and how much you’re borrowing are all examples of details that determine your mortgage rate.

To learn more, see How Are Mortgage Rates Determined? A Comprehensive Look At Mortgage Interest Rates.

Current refinance rates are calculated using a set of details called assumptions. They can include the following:

• A loan amount
• Points paid at closing to get a lower interest rate
• A debt-to-income ratio
• A credit score

The closer your details are to assumptions – you have the same credit score, the same DTI, the same loan amount -- the more likely it is you’ll get a similar rate. Just like rates, assumptions can change. And assumptions differ from lender to lender. So it’s a good idea to check assumptions when you’re comparing rates. To see ours, select the View Legal Disclosures link under where rate are displayed.

A mortgage rate lock keeps your interest rate from changing for a period of time. Rate locks usually last between 15 and 60 days.

Your first step is to apply online or talk to a Home Loan Expert and see what your personalized rate could be. After getting approved for a loan, we’ll help you lock your rate.

Mortgage rates can change daily, sometimes more than once a day. If you’re watching refi rates, it’s helpful to know 0.25% (a quarter of a percentage point), roughly equals a $30 change in the interest added to your mortgage payment.