Refinancing involves replacing your existing mortgage with a new one, typically with better terms or rates. This is a strategic move for homeowners looking to lower their monthly payments, shorten their loan terms, or tap into home equity. Current rates for refinances will depend on the same factors as purchase loans but also on the amount of equity in the home. Refinances are for homeowners who have seen improvements in their credit score, have built equity in their home, or when interest rates have favorably dropped.