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If you want to refinance a mortgage, you should follow the next strategy:

  • Search for a lender to apply for a new loan.
  • Determine what documents you need to collect. In most cases it’s basic financial documentation to prove you are able to repay the loan. Common official papers are the proof of assets, past tax returns, list of debts and pay stubs.
  • If your loan application is approved, you get a quote from the lender. You decide whether the proposed interest rate, fees and closing costs fit you.
  • If you accept the quote,  order an appraisal of your house. It determines the amount of your equity in the house.
  • You close your old loan, pay all fees and the new lender covers your previous mortgage paying money to your old lender.

After the refinancing you’ll have to make the same regular payments, but to the new lender and with a different interest rate.

To take more reasonable decision, please also study: When is refinancing home mortgage worth it?