REFINANCING YOUR HOME

See how refinancing may get you better terms on your mortgage.

People refinance for all kinds of reasons. For some, it's important to lower a monthly payment, while others are in a better financial situation than before and would like to pay their mortgage off sooner. You can also refinance with a Discover Home Equity Loan and avoid closing costs. You have options, so here are some resources to help you decide.

Why are you interested in refinancing?

If rates are lower than you're paying now, it's a good time to consider refinancing your home. You can lock in lower rates and may be able to lower your monthly payment. However, if you apply for a longer-term loan, you may pay more in total interest over the life of the loan. You may also be able to refinance with a home equity loan. While refinance fees vary by lender, Discover Home Equity Loans does not have origination fees or closing costs. A good place to learn about your refinancing options is the refinance guide. Read the refinance guide

Run the numbers

Use the mortgage refinance calculator to find out what you might be able to save by refinancing with today's interest rates.

Top reasons to refinance

Lowering your monthly payment is just one reason to refinance, but there are others, like getting cash out for big expenses. Learn about the top three reasons people may refinance.

What to consider when refinancing

If you are thinking about refinancing, there a few things you should consider, like the fees and length of time you plan to stay in your home.

Shortening the life of your loan may result in significant savings overall. It might lead to higher monthly payments, but it also means paying less interest over time. It makes sense if you can handle higher monthly mortgage payments or are looking ahead to other financial goals. You may also be able to save by refinancing to a shorter-term home equity loan. With a Discover Home Equity Loan, you can refinance with no closing costs with terms ranging from 10-20 years. Learn all about refinancing, including how to pay off your loan faster in the Refinance 101 article. Refinance 101

See how much you could save

Use the mortgage refinance calculator to learn if paying off your mortgage quicker makes sense for you.

Are you ready to refinance again?

Have you refinanced your mortgage before? Consider these options before thinking about refinancing again.

Paying sooner with a Discover Home Equity Loan

If your goal is to payoff the loan sooner, you can take advantage of no closing costs or origination fees by refinancing with a Discover Home Equity Loan. Replace your higher rate loan with a shorter-term home equity loan. Loan terms range from 10-20 years.

If you're interested in locking in a fixed rate in favor of a variable rate, or vice versa, refinancing may be for you. People want to get a new loan type for a variety of reasons, and there are several kinds of loans you might consider. If your goal is to go from a variable rate to fixed rate, refinancing with a home equity loan might make sense for you. Discover Home Equity Loans offers fixed rate loans with no origination fees or closing costs. Whatever your goal, here is information on potential options and what may make sense for you. Learn more about refinancing loan options

What's your situation?

Do you have an adjustable-rate mortgage? Refinancing to a fixed low-interest rate could mean a lower monthly payment.

Looking to save on interest over the long run? A shorter loan term may be what you're looking for.

Don't plan to stay in your home very long? Switching to an adjustable-rate might mean you'll save with lower rates early on.

Interested in a home equity loan as an option? Use a Discover Home Equity Loan to move from a variable rate to a fixed rate mortgage with no origination fees or closing costs.

Before you decide to refinance

It's not a decision to take lightly, but it can make a huge difference if you go in with eyes wide open. To make sure you're considering all the angles and what they'll mean to you, here are some of the most important things you should think about before you decide—like how long you're planning on staying in your home, what you might pay in penalties and how to get started.

Refinance application checklist

It always takes a little stress out of the process if you know what to expect going into the paperwork. Use this checklist to learn what info you'll need to provide—from employment and financial information to info about your current home.

Using home equity to change your loan

There are benefits to refinancing with a home equity loan to payoff your first mortgage. With Discover Home Equity Loans, you can choose new terms while enjoying no closing costs or origination fees. In higher-rate mortgage environments, this can be an attractive option. Learn more to see if it makes sense for you.

If you are juggling multiple bills a month and paying too much on interest over time, consolidating debt may help you simplify and lower your monthly payments. You should understand the reasons for debt consolidation, what your options are and the benefits and risks of each. Your home equity can be a great source for debt consolidation. Use a calculator to estimate how much you may save using your home equity. Debt consolidation calculator opens in a new window

Consolidating your debt may help you:

Eliminate high-interest debt with options that allow you to consolidate credit card, education, auto and other debts to one loan with fixed terms.

Lower your monthly payments by refinancing several higher-interest debts to one fixed payment per month.

Set your own terms by saving more or less in interest over the long run depending on how much you can afford each month.

Simplify your life by only having to worry about one payment per month rather than several.

Consolidating debt with home equity

Taking control of your credit cards, auto loans and other debts is a great feeling, and your home equity may be able to help. See if you are eligible to get cash from your home equity to consolidate debt, which may allow you to enjoy low fixed interest rates with just one simple payment every month.

Pay off debt with a cash-out refinance

A cash-out refinance replaces your current mortgage for more than you currently owe, but you get the difference in cash. You can use that money to pay off debts directly or for other major expenses.

How much home equity do you need?

If you have equity in your home, you may qualify to use your equity in order to consolidate your debt and pay a lower interest rate on one monthly payment. Learn how much home equity you may need to consolidate your debt.

Your home is valuable, and it can be of great help if you find yourself needing cash. A cash-out refinance is a new loan you take against your home. The new loan will be for more money than you currently owe, but you get the difference in cash. People refinance this way for a lot of reasons—from debt consolidation to paying for unexpected expenses or major life events. Or, you can get cash out of your home using a home equity loan. Learn more about cash-out refinancing

Getting cash with a home equity loan

A home equity loan is another way to get cash out of your home. Discover Home Equity Loans offers fixed rate loans without closing costs that you'd incur with a cash-out refinance. It's a separate loan that allows you to use the value you've already earned on your home.

Home equity vs. cash-out refinance

There are key differences between a home equity loan and cash-out refinance. Here are some reasons to consider each.

Estimate the cash you can take out

Use the cash-out refinance calculator to learn how much cash you can get out of your home.

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