Mortgage rates fluctuate, and refinancing offers homeowners the chance to secure a lower rate, particularly if they’re currently paying a higher rate. Refinancing can help you build equity faster by locking in a lower, fixed rate.

Advantages:

• Refinancing to a lower rate with the same payment builds equity faster.
• If you’re planning to relocate soon, a lower payment can help you save for moving expenses.
• Freeing up funds from a lower payment can be used for debt repayment or other financial needs.

Disadvantages:

• Refinancing often comes with closing costs that might outweigh the long-term savings.