How do you do it?

What is the penalty?

Why do not more people do it?

Refinance means to take out another loan (mortgage) to pay off the original loan (mortgage).

The penalty is the difference in interest rate and expenses of the refinancing, but often you can borrow more money and/or extend the loan term to have a lower payment. Now a days financing is so tough to get that unless you have golden credit and plenty of equity and a high interest rate, there are very few good reasons to do it.

How do u do it? You apply at a local lender & see how it goes.

What is the penalty? Every time u refinance there r thousands of dollars in closing costs. Do not buy into the ''no closing costs'' hype, if there r no closing costs, u r paying more somewhere else.

Why do not more people do it? Because they owe more than the house is worth. Most refi is will only loan 90% of market value. If u owe $250,000 & ur house will appraise at $200,000 - u cannot get a refinance.