When does refinancing your mortgage make sense?

Refinancing replaces your mortgage with a new one, often to get a lower rate or access equity.

Key points

• Compare the penalty for breaking your current term with the interest you will save.
• A cash-out refinance can consolidate high-interest debt into a lower mortgage rate.
• Spreading short-term debt over 25 years can cost more in total, so keep extra payments going.

What to do next

Use the mortgage calculator to compare payments before and after.