Homeowners looking to refinance their existing mortgage loan often turn to refinancing to take advantage of lower interest rates, reduce their monthly payments, change the loan term, or access the equity in their home to pay off existing debt or finance projects.

Refinancing can help to reduce interest rates, transition from an adjustable rate to fixed-rate loan, convert an equity loan (such as a home equity line of credit) to a conventional loan, or obtain a lump sum amount to address bills. It’s important to keep in mind that refinancing typically includes certain fees and charges, transfer taxes, and impacts credit ratings.

In order to start the process, homeowners must seek out a lender who can provide refinancing opportunities. Lenders may use various criteria to determine if they’ll approve a refinance loan such as credit score, income, debt-to-income ratio, loan-to-value ratio, and more.

It’s important to understand the details of the refinance application process, including the various refinancing options, loan costs, and if there are any prepayment fees. Consider speaking with a financial professional to better understand the costs and benefits of refinancing a mortgage loan and consider all possible options.