When considering refinancing your home, it’s understandable to wonder if you will lose equity. The good news is that in the end, refinancing your home will not cause you to lose equity. Your home equity may change depending on a number of factors, including the amount that you’ve repaid towards your mortgage and the current market conditions that affect the value of your home. Here are a few things to keep in mind:
Equity is based on the difference between your home’s current value and the amount that you owe on your mortgage.
When you refinance your home, you’ll essentially be paying off your existing mortgage and replacing it with a new one. Although the balance of your mortgage may change, the value of your home will typically remain the same.
One potential benefit of refinancing your home is that it could allow you to lower your interest rate or monthly mortgage payments, which could help you free up cash to put towards other important financial goals.
If you’re considering refinancing your home, it’s always a good idea to speak with a financial advisor or mortgage professional who can help you evaluate all of your options and make the best decision for your unique situation.
Overall, refinancing your home can be a smart move that can help you achieve your long-term financial goals. And the good news is that you don’t have to worry about losing your hard-earned equity in the process.