Key Differences Between Purchase and Refinance Mortgages

2023/01/30

1. Purpose Purchase: Buying a new home Refinance: Replacing an existing mortgage with a new one 2. Loan amount Purchase: Full amount required Refinance: Outstanding balance of the existing mortgage 3. Interest rates Typically, higher for purchase than refinance 4. Fees and other costs Usually lower for refinancing mortgages, as the lender is replacing an existing mortgage.