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When people buy their first home, they often opt for a 30-year mortgage. With a 30-year mortgage, your payments are spaced out over a longer period of time, which reduces your monthly mortgage payment. Unfortunately, this also increases the amount of interest that you pay out over the life of the loan. This could leave you with less of your own money to save for retirement, fund your children's college savings accounts, and pay off your other debts.
Refinancing when there are low refinance rates can give you the extra edge you need in reducing your overall interest payments. Low refinance rates can help you in two ways: