Can you refinance any loan or just a mortgage?

Refinance PDF

Typically, when a person hears the term refinancing, they might immediately jump to the conclusion that this is only for mortgages. In fact, this is not true at all. Any loan you have from credit cards to student loans including car loans and home equity loans should be considered for refinancing. With the Federal Reserve lowering interest rates (and likely to lower again soon), now is the time to start considering if a loan refinance is right for your situation.

What other loans besides a mortgage can be refinanced?
Almost any loan can be refinanced including student loans, home equity loans, auto loans personal installment loans, and even credit cards if you consider transferring the balance from an old card to a new card.

How should we evaluate if refinancing makes sense?
There are a few questions that help guide the decision. Can you lower the rate? Can you pay it off faster? Can you decrease the payment amount? Can you convert a variable rate to a fixed rate? And if it is for a mortgage, can you recoup the refinancing costs before you intend to sell the home? Any one of these are good reasons to refinance any loan.

What should you consider when refinancing a mortgage?
Considerations include moving from a variable rate to a fixed rate, consolidation of other debt into a lower rate, paying it off faster with a shorter term, or doing a major renovation and using a cashout refinance instead of a home equity loan.

Should we wait for rates to drop even more before refinancing?
If your rates are high and your credit score or financial situation has improved, then don’t wait. You can probably really help yourself and then plan to refinance again when or if rates drop again. If the costs to refinance are low, then refinancing in the next few months and doing it again can also be very beneficial.