What are the 2 types of refinances?

There are two types of refinances:

1. Rate and term refinance: This type of refinance involves replacing an existing mortgage with a new one that has better terms, such as a lower interest rate, shorter loan term, or both. The primary goal of a rate and term refinance is to save money on monthly mortgage payments or reduce the overall cost of the loan over time.

2. Cash-out refinance: In a cash-out refinance, a homeowner takes out a new mortgage for more than the outstanding balance on their existing mortgage, and receives the difference in cash. This can be an attractive option for homeowners who need cash for things like home renovations, debt consolidation, or other large expenses. However, it increases the overall amount of debt owed on the home and should be carefully considered before pursuing.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.