Course 13110 lessons

Refinancing your home loan

A homeowner's guide to refinancing, explaining when it actually saves money versus when closing costs eat the savings, and how to calculate your real break-even point before signing.

What refinancing actually means

Refinancing means paying off your current mortgage with a brand-new loan, usually taken out to get better terms than your original one, whether that's a lower interest rate, a different repayment term, or access to cash based on the equity you've built. The new loan, which can come from your current bank or a different one, pays off what you still owe on the old loan, and you start over with a fresh amortization schedule under the new terms.