Page 6 - Your Guide to Accessing Home Equity 7.18.17

#2 Refinancing Your Mortgage

Another option to consider to improve your financial
security during retirement is refinancing your current
mortgage loan. With a refinance, you pay off your existing
loan and replace it with a new mortgage loan: one with
terms that better meet your current and future financial
needs. Refinancing can lower your monthly mortgage
payments and improve monthly cash flow. Choosing a
lower interest rate and modifying your loan term can also
save you money over time.

Refinancing may save you money in the long
run if some or all of these apply to you:

p Your current interest rate is higher than
today’s rate by 1% or more

p You plan to stay in your home during
retirement

p You have an adjustable rate mortgage

A cash-out refinance might also be suitable if you need
to access some of your home equity as cash. Just
like a regular refinance, you get a new loan to replace
your current mortgage at a lower interest rate and you
refinance a loan for more than the amount owed.

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