Any time your rate is reduced at the same term and principal amount, it has the potential to lower your monthly payment. Your HomeBridge Loan Originator can provide you with fees and closing cost estimates to help you weigh the pros and cons of a refinancing your mortgage.
There are a few ways a refinance can lower your monthly payment:
Refinancing to a lower rate.
Refinancing to a lower rate may decrease your interest costs and monthly obligation.
Change the term of your loan.
Refinancing a 15 year mortgage to a 30 year results in a lower monthly payment because your payments are spread over a longer period of time. However, you will pay more in interest during that longer term. If your goal is spending less money overall, you may want to shorten a 30 year mortgage to 20 or 15 years. The monthly payments will be higher, but you will pay less interest over the life of the loan.