Mortgage Refinance or Switch? Two Tools Every Homeowner Should Understand

Understanding the difference between a refinance and a mortgage switch helps you make informed decisions when the timing feels right.

What Is a Mortgage Switch?

A mortgage switch, sometimes called a transfer, is exactly what it sounds like. You move your existing mortgage to a new lender, but you keep everything else the same.

Your mortgage balance stays the same.
Your amortization stays the same.
No additional funds are taken out.

People typically consider a switch when they are looking for a better rate, better mortgage features, or a lender whose product fits them more comfortably.

Because the structure of the mortgage does not change, a switch is often simpler and usually involves fewer costs than a refinance.