Mortgages can be very tricky, and knowing when to refinance yours isn’t always the easiest thing to figure out. But what exactly does it even mean to refinance your mortgage?

When you take out a new mortgage to replace the original one you took out, that is refinancing. This is done because you can get a better interest term and rate when refinancing. Doing so is highly recommended for those with great credit scores, but those that have bad credit are dissuaded from doing so.

If you’ve found yourself in a situation where it’s difficult to make your mortgage payments, it might be time to consider refinancing.

Image via PYMNTS.

X