Is Mortgage Refinancing Right for You?
Intro
Mortgage refinancing has gained traction among homeowners looking to optimize their financial situations. At its core, refinancing entails replacing your existing mortgage with a new loan, often with different terms and possibly at a different interest rate. This decision, while seemingly straightforward, requires a deep dive into various factors including interest rates, personal financial health, and future goals. Knowing when and if to refinance can make or break your financial strategy.
Changes in the economic landscape often trigger homeowners to rethink their mortgage options. With fluctuating interest rates resembling a rollercoaster ride, understanding how these shifts impact your mortgage is vital. Many are unaware that the potential benefits can be substantial. Whether it's lowering monthly payments, switching from an adjustable to a fixed-rate mortgage, or tapping into your home equity, the landscape is rich with possibilities. The costs associated with refinancing can be daunting too, hence it's paramount to weigh these against the potential savings.
When considering refinancing, several key areas warrant careful examination:
- Interest Rate Trends: Keeping an eye on market trends can aid in determining the right time to refinance.
- Financial Objectives: Outlining clear financial goals will help in assessing if refinancing aligns with your aspirations.
- Personal Circumstances: Factors such as job stability, income fluctuations, and family changes can heavily influence your decision.
As we explore these aspects in depth, this article aims to equip you with the knowledge necessary to navigate your refinancing journey wisely. From the nuances of refinancing types to assessing eligibility and potential pitfalls, you will find a robust guide designed to empower informed decision-making.
Investment Dictionaries
In the realm of refinancing, mastering the language of finance is essential. Familiarity with key terms not only helps understanding but also aids in making informed decisions.
Key Financial Terms
- Loan-to-Value Ratio (LTV): This is the ratio of your mortgage amount to the appraised value of your home. It's significant as it can affect the interest rate you are offered.
- Equity: This refers to the portion of your home that you truly own. It’s the market value of the home minus the outstanding mortgage balances.
- Closing Costs: These encompass various fees including origination fees, appraisal fees, and title search fees connected to the refinancing process.
- Point: A point is one percent of the loan amount, and you may choose to pay points upfront to lower your interest rate.
Investment Jargon Explained
Understanding the nuances of mortgage refinancing can be daunting for newcomers. Here’s a simplified breakdown of relevant jargon:
- Fixed-Rate Mortgage: This mortgage type maintains the same interest rate over the life of the loan, providing stability in monthly payments.
- Adjustable-Rate Mortgage (ARM): Unlike fixed-rate mortgages, ARMs start with a lower interest rate that fluctuates over time based on the market. This can lead to lower initial payments but poses risks of rising costs later.
- Prepayment Penalty: Some loans come with fees for paying off your mortgage early. It’s crucial to check for this when refinancing.
"Mortgage refinancing can be a double-edged sword; knowing the right terms and conditions makes all the difference."
Arming yourself with this financial vocabulary can be the first step in making a prudent refinancing decision. Understanding these terms and concepts will enhance your ability to weigh different refinancing options effectively and take calculated steps forward.
Understanding Mortgage Refinancing
Understanding the concept of mortgage refinancing is essential for any homeowner looking to navigate their financial landscape effectively. With rising interest rates and fluctuating market conditions, grasping the fundamentals of refinancing can lead to significant savings and financial flexibility. Whether you're contemplating a change to lower monthly payments, adjust your loan terms, or consolidate debt, knowing what refinancing entails is the first step toward informed decision-making. This section aims to clarify what refinancing means and how it functions.
Definition of Mortgage Refinancing
Mortgage refinancing is essentially the process of replacing your existing mortgage with a new one. It often involves taking out a new loan to pay off the original mortgage. Homeowners usually pursue refinancing to achieve better loan terms such as a lower interest rate, which could lead to more affordable monthly payments. However, refinancing is not just about securing better terms; it can also involve altering the length of the loan, shifting from an adjustable-rate to a fixed-rate mortgage, or even cashing out equity to fund other expenses.
In simpler terms, if your current mortgage feels like a heavy weight on your shoulders, refinancing can be like swapping out your old backpack for a lighter, more comfortable one. But it’s crucial to weigh the potential benefits against the costs involved, as refinancing isn’t a one-size-fits-all solution.
How Refinancing Works
The process of refinancing can be broken down into several clear steps, making it more manageable to understand. Here’s a brief overview:
- Assess Your Current Loan: Start by reviewing your existing mortgage. Understand its terms, interest rate, and remaining balance. This will help gauge what improvements you are aiming for.
- Research Current Rates: The mortgage market is ever-changing. Keeping an eye on current interest rates can help you determine if now is the right time to refinance.
- Choose a Lender: Not all lenders offer the same rates or terms, so it’s crucial to shop around. Look for a lender that suits your needs and financial scenario.
- Submit an Application: This involves providing financial documentation, such as income statements and credit information, for the lender to assess your eligibility.
- Lock in Your Rate: If you find an attractive interest rate, locking it in can protect you from fluctuations.
- Undergo Appraisal: Usually, the lender will require an appraisal of your property to determine its current value.
- Closing the Loan: Once everything is approved, you will go through a closing process, similar to when you first purchased your home. This step may include additional closing costs.
Understanding this process demystifies refinancing and equips you with the knowledge needed to make a sound decision. Just remember, it's smart to think about your financial goals carefully before making any moves.
A well-informed homeowner can save thousands of dollars through careful refinancing decisions, underscoring the importance of understanding the basics first.
Why Consider Refinancing?
The decision to refinance a mortgage is not simply a matter of reducing the interest rate. A host of reasons can motivate homeowners to explore this avenue, and each comes with potential implications that demand serious consideration. Understanding why someone might consider refinancing can shed light on multiple aspects of personal finance, thus equipping individuals to make better-informed decisions.
Lowering Monthly Payments
One of the most compelling reasons to refinance is the prospect of lowering monthly mortgage payments. This could free up cash for other expenses or savings. Imagine a situation where a homeowner initially took a mortgage at a higher rate but now notices that rates have dipped. Simply swapping to a newer, lower-rate loan could be like finding a crisp bill tucked away in an old jacket.
This isn't just theoretical. For instance, if you originally secured a mortgage at 5% over a 30-year term, switching to a loan at 3.5% could significantly reduce your monthly outlay. You could see savings of hundreds of dollars each month, which could then be redirected toward a child's education or a retirement fund.
"Lowering your monthly payments is like widening the runway for all your other financial goals."
Changing Loan Terms
Refinancing also opens the door to adjusting the terms of a mortgage. Homeowners may want to shorten their loan term from 30 years to 15 years, allowing them to own their home outright sooner. The catch here is that while your monthly payments might increase slightly, the overall interest paid over the life of the loan would tumble down significantly. It’s about weighing immediate cash flow against long-term financial health.
Additionally, changing loan type is another option; you might think about switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. This change can provide stability in monthly payments and peace of mind against fluctuating interest rates. In periods of economic uncertainty, this kind of security might be just what you need.
Consolidating Debt
Consolidating debt is yet another persuasive reason for refinancing your mortgage. Homeowners often juggle multiple debts—credit cards, personal loans, perhaps even student loans—that come with higher interest rates compared to that of a mortgage.
By refinancing to pull out equity from the home, you can pay off those high-interest debts in one fell swoop. It's akin to trading in an old car for a versatile vehicle that serves multiple purposes. The result is a single, more manageable monthly payment, typically at a lower interest rate overall.
To consider this, however, it’s crucial to evaluate your debt situation carefully. If not managed properly, you could find yourself in a tighter spot than before. It’s a fine balance and one that requires reflection and forward-thinking.
In summary, refinancing is not a straightforward process, but its benefits can be worthwhile. By thinking strategically about monthly payments, loan terms, and debt consolidation, homeowners can make significant strides toward their financial goals.
Identifying Your Financial Goals
Understanding your financial goals is an essential prerequisite when considering mortgage refinancing. This process isn’t just about chasing lower interest rates; it's about aligning your mortgage with both your short-term necessities and long-term aspirations. The more clarity you have about what you want to achieve financially, the easier it will be to determine whether refinancing is the right move.
Being aware of your specific objectives can shed light on several aspects:
- Affordability: Are you focused on lowering your monthly payment to free up some cash flow?
- Stability: Perhaps you wish to switch from an adjustable-rate mortgage to a fixed rate, avoiding the risks of fluctuating payments.
- Debt Management: Are you looking to consolidate other debts into your mortgage for easier management?
- Investment: Do you plan to leverage the equity in your home for investments that could yield better returns?
By mapping out your financial goals, you can navigate the murky waters of mortgage refinancing with insight and purpose.
Short-Term vs. Long-Term Objectives
When categorizing your goals, it's crucial to distinguish between short-term and long-term objectives. Short-term goals might be specific to immediate cash flow, such as reducing your monthly mortgage payments, while long-term goals often reflect broader financial aspirations, like building wealth or saving for retirement.
Short-Term Goals: Here are common examples of short-term objectives:
- Lowering monthly payments to increase disposable income.
- Paying off high-interest credit cards by rolling that debt into your mortgage.
- Avoiding an adjustable-rate mortgage that could increase costs down the line.
Long-Term Goals: On the flip side, long-term objectives might include:
- Increasing your home equity kthrough refinancing at a lower interest rate.
- Setting up a stable financial future through consistent payments on a fixed-rate loan.
- Utilizing home equity for future investments or educational purposes.
These distinctions are vital as they indicate when refinancing can be beneficial and when it may not be the right path. Managing short-term needs while keeping an eye on long-term aspirations can lead to wise financial decisions, enhancing both your present and future situation.
Assessing Your Current Financial Situation
Taking stock of your current financial situation is an important step before diving into refinancing options. You need to understand where you stand financially before making any significant shifts. This includes evaluating your income, expenses, outstanding debts, and credit score.
- Income and Expenses: Do you have a stable income? Are your expenses under control? This assessment gives you the ground you need to know if refinancing is practical.
- Outstanding Debts: List all your debts, not just your mortgage. Understanding the depth of your financial obligations can help you determine the value of consolidating debts through refinancing.
- Credit Score: Your credit score greatly affects the terms of any refinancing deal. Generally, a higher score can secure better interest rates. Checking your score ahead of time can guide your approach to lenders and prepare you for discussions about rates and terms.
Refinancing isn’t just about changing loans; it’s about strategically positioning yourself for the future. A thorough understanding of your financial landscape will empower you to make a decision based on complete information.
"Financial goals play a crucial role in guiding your choices, ensuring that any decision aligns with your future plans."
While many people might jump into refinancing without considering these elements, taking the time to assess them can lead to not just meeting your immediate financial demands but persuading you towards sustainable financial health.
Interest Rates and Market Trends
Understanding the fluctuations in interest rates and market trends is vital for homeowners considering mortgage refinancing. The interest rates can significantly impact not only the monthly payments but also the overall cost of a mortgage over time. If rates dip, it can present a golden opportunity for refinancing. Conversely, rising rates can discourage many from making such moves. So, getting a good grip on these trends helps in making a more informed decision.
Interest rates influence various aspects of finance, which include the cost of borrowing, the performance of the housing market, and the broader economy. Mortgage lenders often adjust their rates based on the yield of 10-year Treasury bonds and the overall economic conditions. When the economy shows signs of slowing down, rates tend to drop to encourage spending. Conversely, in a thriving economy, the rates often creep up as lenders anticipate higher inflation.
Current Interest Rate Environment
As of today, the atmosphere for mortgage rates has been quite dynamic. Recent shifts have seen rates oscillating, with lending institutions ready to adjust their rates according to Federal Reserve moves and market responses. Homeowners currently face a mixed bag; while some rates remain historically low, certain pockets show increases reflecting economic indicators.
For example, if the Federal Reserve decides to hike the interest rates to combat inflation, one might notice an uptick in mortgage rates. This can induce anxiety among potential refinancers, prompting them to rush before rates escalate further. Even a minor change in your mortgage rate can translate to significant differences over the life of your loan. The general rule of thumb suggests considering refinancing when there is at least a 1% reduction in rates compared to your current mortgage.
Here are some points to consider regarding the current rate environment:
- Fixed Rates: Often favored for their predictability. With rates being relatively stable, it’s a known factor that can help homeowners plan their finances well.
- Adjustable Rates: Although enticing for their initial lower rate, these can pose a risk as market fluctuations may lead to higher payments in the future.
- Hybrid Loans: These tend to mix the security of fixed rates for an initial period before switching to a variable rate.
Considering these options carefully in conjunction with your financial strategies can help in making the right call.
Forecasting Future Rate Changes
Looking ahead, predicting interest rate changes can be akin to reading tea leaves; it’s not an exact science. Analysts rely on various economic indicators, such as inflation rates, employment figures, and Federal Reserve meetings, to offer forecasts. While nobody has a crystal ball, certain trends can provide clues to potential changes.
For projection purposes, consider these aspects:
- Inflation: A rise in inflation typically leads to increased interest rates. If prices rise and consumer spending increases, the Federal Reserve may respond by tightening monetary policy.
- Economic Growth Indicators: When growth appears robust, rates may be pushed upward as they attempt to keep inflation in check.
- Geopolitical Events: Sometimes, global affairs play a role too. Unrest or instability can lead to unexpected shifts in market confidence, causing interest rate alterations.
Understanding these factors will not only help in anticipating potential shifts but also in strategizing around them. Keeping your finger on the pulse of market trends thus becomes essential for making educated choices about refinancing.
"Interest rates are the levers that hold the economy in balance; our grasp on them determines our financial path."
Evaluating Costs Associated with Refinancing
When it comes to refinancing a mortgage, evaluating the costs associated with this financial decision is crucial. Refinancing might offer benefits like lower interest rates or improved loan terms, but these advantages can sometimes be overshadowed by various costs involved. Homeowners need to conduct a thorough assessment to ensure that refinancing aligns with their financial strategy.
While one might think about refinancing primarily for lower monthly payments or debt consolidation, it’s important not to gloss over the costs that come with the territory. Properly evaluating these costs can determine whether the refinancing process is beneficial or a money pit.
Closing Costs Explained
Closing costs can be a significant factor when considering refinancing. These are the expenses that borrowers need to pay to finalize a mortgage refinance. Typically, closing costs range from 2% to 5% of the total loan amount, making it a notable consideration.
Some of the common components of closing costs include:
- Loan Origination Fees: These fees are charged by lenders for processing the loan and can vary widely.
- Appraisal Fees: Lenders usually require an appraisal to assess the property's worth, which can also add to the total costs.
- Title Insurance: This protects against losses from disputes over property ownership and is a standard expense during refinancing.
- Credit Report Fees: Lenders will often charge for obtaining your credit report as part of the assessment.
It’s vital to get a good faith estimate before proceeding. This document outlines what your closing costs will be, allowing you to investigate whether the benefits of refinancing outweigh these expenses. If the costs are too high, it may not be the right time to make a move.
Potential Hidden Fees
Not everything about refinancing is cut and dry. Beware of potential hidden fees that can sneak up on you. These costs might not be reflected in the initial estimates but can impact your overall financial outcome. Some things to keep an eye out for include:
- Prepayment Penalties: Some loans have stipulations that penalize you for paying off your mortgage early; if you have these, refinancing might not be wise.
- Document Preparation Fees: There might be additional charges for preparing and reviewing documents necessary for your refinance, often overlooked.
- Flood Certification Fees: Depending on where you live, proof that your property isn’t in a flood zone might incur a fee.
Evaluating these hidden costs requires a keen eye. Before making decisions, ask your lender upfront about potential fees that could arise during refinancing. Transparency will help you make an informed choice and better understand your financial obligations.
The Refinancing Process
The process of refinancing a mortgage can often feel like stepping onto a tightrope. Homeowners must navigate through a variety of factors, weighing their personal circumstances against potential financial gains. This part of the article emphasizes not only the logistical steps involved but also the broader implications of each choice you make during refinancing. Understanding this process enables one to make decisions that align closely with their financial goals while minimizing unnecessary risks.
Steps to Refinance Your Mortgage
Refinancing isn't merely a one-step journey; it's more like a multi-faceted puzzle where each piece needs careful consideration. Here’s a breakdown of the key steps involved:
- Evaluate Your Current Loan: Look closely at the terms of your existing mortgage. Understand how much you owe, your interest rate, and the remaining balance. This will help you determine if refinancing will bring any real benefits.
- Assess Your Credit Score: Your credit score will significantly affect the refinancing options available to you. A higher score often translates into lower interest rates. Make sure to check your score well ahead of time.
- Research Lenders: Not all lenders are created equal. Shop around and compare rates from different banks, credit unions, or online lenders. Each lender has unique terms which could impact your decision.
- Choose the Right Loan: Decide whether you want a fixed-rate mortgage or an adjustable-rate mortgage. Each comes with its own set of benefits and considerations, so choose the one that best fits your situation.
- Lock in Your Rate: If you find a favorable rate, consider locking it in. This ensures that, no matter how rates fluctuate, you will retain that rate for your refinancing.
- File Your Application: Prepare all necessary documentation, including income verification, tax returns, and current loan information. Provide accurate and complete information to avoid delays.
- Undergo the Approval Process: Once the application is in, the lender will review your financials, possibly schedule an appraisal, and check your credit again. It’s best to be prepared for questions or additional requests.
- Close the Loan: After approval, you will go through the closing process, where you will sign the final paperwork and settle any closing costs.
Each of these steps carries its weight in the overall refinancing journey, and missing a single one can lead to complications.
Timeline and Expectations
The timeline for refinancing can vary widely based on individual circumstances, lender protocols, and market conditions, but understanding what to expect can help make the experience smoother.
Typically, the refinancing process can take anywhere from 30 to 45 days. Here are some key phases in that timeline:
- Initial Research and Comparison (1-2 weeks): Start with collecting information around rates and lenders. This is a critical phase. Being well-informed sets the stage to make better choices.
- Application Submission (1 week): After selecting a lender and loan type, getting your application in promptly is key.
- Processing and Approval (2-4 weeks): This phase encompasses the lender's review of your financials and credit, which can vary based on borrower experience and lender efficiency.
- Closing (1 week): This is when the final details get nailed down, and your new loan terms are solidified. You'll finalize paperwork and take care of any applicable fees.
It’s important to note that while refinancing can provide financial benefits, actual timelines can be unpredictable; be ready for some flexibility.
Being clear on what this process entails can help ease anxieties and clarify expectations. Refinancing your mortgage isn't just about paperwork; it’s also about shaping your financial future.
Potential Risks of Refinancing
While refinancing your mortgage can offer several advantages, it is equally important to understand the potential risks involved. Every financial decision comes with its own set of challenges, and refinancing is no exception. Navigating through these possible pitfalls can help ensure that your journey towards mortgage refinancing is well-informed and thought out.
As you consider whether refinancing is the right move for you, take into account both the immediate impact and long-term implications of your choices. Below, we delve into two key risks associated with refinancing:
Risk of Higher Overall Interest Costs
One of the most significant concerns when refinancing is the potential for higher overall interest costs. Simply lowering your monthly payment doesn't always mean you're saving money in the long run. When you refinance, especially if you extend your loan term, you could end up paying a higher interest rate over time.
- Loan Term Considerations: Extending the loan term often leads borrowers to pay less each month, but this can translate to thousands more in interest over the life of the loan. For instance, if you're moving from a 15-year mortgage into a 30-year mortgage, you could significantly increase your total interest.
- Initial Rates vs. Long-Term Costs: Even if the initial interest rate seems attractive, it is crucial to calculate the total costs associated with the refinancing. Make sure to weigh the upfront costs against any savings you anticipate.
To summarize, while the monthly savings might seem tempting, always look at the bigger picture where total costs are concerned.
Impact on Credit Score
Refinancing your mortgage can have repercussions for your credit score, which is often overlooked. Understanding how this process interacts with your credit profile is paramount.
- Hard Inquiries: When you apply for refinancing, lenders typically perform a hard inquiry on your credit report, which can temporarily reduce your score by a few points. Considering how crucial credit scores can be for future loans or credit lines, this is definitely something to keep in mind.
- Debt-to-Income Ratio: If the refinancing results in a lower monthly payment, you may see an improvement in your debt-to-income ratio, which can be beneficial. Nevertheless, if it increases your overall debt burden, it could lead to a negative impact on your score.
- Timing Matters: Remember the timing of your refinancing. If you are planning to make a significant purchase, like a car or a second home, it might be wise to delay refinancing until after you've secured these loans.
Hit’s best to keep an eye on how refinancing fits into your overall financial strategy, including its impact on your credit score.
In the world of finance, knowledge is as good as gold. Weigh your pros against cons meticulously before moving forward.
Ultimately, understanding these risks is crucial when deliberating whether to refinance. Keep a level head, do the math, and don't hesitate to consult with a financial advisor if you find yourself in murky waters.
For an in-depth analysis of how refinancing can affect your mortgage, you may refer to additional resources like Investopedia or NerdWallet.
By knowing the potential pitfalls, you can take the reins of your financial future with more confidence.
When Is Refinancing Not a Good Idea?
Refinancing can seem like a financial lifeline, but it’s not always the savior homeowners think it is. Gifting your mortgage a makeover isn't tipsy with excitement; in fact, it can sometimes lead to pitfalls that outweigh any potential benefit. Thus, it’s crucial to understand when steering clear of refinancing might be the best path. This section navigates two critical scenarios where refinancing may not serve your best interests.
Staying in Your Home for a Short Period
If you’re not planning to stick around for the long haul, refinancing might not be the golden ticket you hoped for. Homeowners who are eyeing a move within a couple of years should tread carefully before flipping the switch on refinancing. Why?
- Closing Costs: Refinancing isn’t free. Closing costs can run into thousands of dollars. If you plan to leave before breaking even on those expenses, you may light your money on fire.
- Interest Savings: The ideal refinancing lowers interest rates, but if you’re not around to reap those savings, it’s akin to throwing a party with no guest of honor.
In practice, if you're expecting a job relocation or a family change, think twice before pulling the trigger. Some folks stick around just long enough to feel the crunch and cap off their mortgage journey. If that's you, keep your eyes on the exit door—refinancing can add a layer of complexity without delivering much joy.
Increases in Interest Rates
Riding the waves of fluctuating interest rates is part of the mortgage journey. If rates are climbing, refinancing may not only be ill-timed but could result in higher monthly payments instead of alleviating your financial burden. Here are some points to consider:
- Higher Payments: Refinancing at a higher rate means more dough coming out of your pocket each month. Why trade your current mortgage for a costlier alternative?
- Market Conditions: Many homeowners wear blinders when they see a rate drop and forget the bigger picture. If you know rates are on an upward trajectory, locking in may lead to regret sooner than you wish.
A wise homeowner watches the market and knows when to seize the moment—and when not to bother. If you’re looking to refinance in an environment where interest rates are rocketing upwards, your plans could backfire. The bottom line is to analyze the broader economic landscape before committing your hard-earned cash to refinancing.
In summary, refinancing isn't just about paperwork and dreams of lower payments; context matters. Knowing how long you’ll reside in your home and keeping a keen eye on interest trends can save you from costly missteps in the long run.
End and Final Considerations
Deciding whether to refinance your mortgage is a significant step that should not be taken lightly. As we’ve explored throughout this article, refinancing can offer various benefits—from reducing monthly payments to changing loan terms and consolidating debt. However, it’s also essential to weigh the potential risks and understand if the timing is right for your unique financial situation. This conclusion not only recaps vital points but emphasizes the importance of making informed decisions.
Recapping the Key Factors
Here are the main elements to consider when thinking about refinancing:
- Interest Rates: It’s crucial to keep an eye on current interest rates. Lower rates can mean savings, but if rates are rising, waiting might be wise.
- Costs Involved: Often, homeowners forget the closing costs associated with refinancing. Having a clear picture of these expenses will help calculate if refinancing makes financial sense.
- Financial Goals: Take a moment to reflect on your goals—whether they are short-term (lowering payments) or long-term (paying off debt). Tailor your refinancing strategy to align with these objectives.
"Refinancing isn’t just a numerical exercise; it’s about aligning your financial strategy with your life goals."
- Market Trends: Understanding the market can offer insight into the best windows for refinancing. Being proactive can lead to better decisions.
- Duration of Stay: If you plan on moving soon, refinancing might not be worthwhile, as it can take time to recoup the costs.
Making an Informed Decision
To navigate the refinancing landscape effectively, follow these steps:
- Assess Your Current Situation: Look closely at your finances. Are you in a stable place? Do you have other debts that could benefit from consolidation?
- Consult Professionals: Seek advice from financial advisors or mortgage professionals who can help demystify the process and guide your choices.
- Calculate the Numbers: Use online calculators to gauge potential savings versus costs. Align all calculations with your financial goals.
- Stay Flexible: The market fluctuates. What may appear beneficial today might change tomorrow. Be prepared to adapt your strategy as circumstances evolve.
Refinancing is not a one-size-fits-all solution, but with due diligence and careful consideration, you can turn it into a smart financial move. Remember, your home and finance are unique, and so should be your approach toward refinancing.
