Get your new home purchase or refinance loan approved. 

KEY TAKEAWAYS

• Getting a mortgage with a lower interest rate is one of the best reasons to refinance.
• When interest rates drop, consider refinancing to shorten the term of your mortgage and pay significantly less in interest payments.
• Switching to a fixed-rate mortgage—or to an adjustable-rate one—can make sense depending on the rates and how long you plan to remain in your current home.
• Tapping equity or consolidating debt can be good reasons to refinance—or doing so can sometimes make the debt trap worse.

For example, a 30-year fixed-rate mortgage with an interest rate of 5.5% on a $100,000 home has a principal and interest payment of $568. That same loan at 4.1% reduces your payment to $483.