Refinance after building equity

[Will Stahl]

Hey Everyone,

I have a quick question about refinancing a mortgage. I've read several articles and there is a TON of information - a little over whelming and sometimes confusing. I have one specific question that I hope you all can clarify for me.

Lets say I take out a mortgage for $300,000 and put 5% down. 10 years later I have built up 20% equity in my home. Can I refinance my loan, keeping it at the value of $300,000 but get a much lower payment due to there being 20% down?

After reading the forums, It seems as if my above thinking isn't how it actually works and that refinancing will reap the use of the currently market value of the home (along with a new interest rate).

Thanks,

Will