Mortgage Refinance
Mortgage refinancing is the process of moving from home loan from one bank to another for various reasons. The key idea with refinancing mortgages is to reduce monthly payments, get a better interest rate, or change loan schemes from a flexible rate mortgage to a fixed-rate mortgage. Additionally, some people need access to cash liquidity to fund home renovation projects or to pay off other borrowings and other purchases, and will profit to obtain a cash-out refinance.
The various reasons people opt to leverage with refinancing are:
- Cash out home equity: Homeowners can extract equity from the homes for various reasons such as major home renovations, car purchase, debt consolidation, deposit for next property etc.
- Change loan duration: shorten the time period to pay lesser interest over the duration loan & own the home much quicker; or elongate the duration to decrease monthly payments.
- Lower rates: there might be much more attareactive rates available in the market as compared to the lender you are currently with. Switching your mortgage may save you thousands.
- Change loan structure: Borrowers who used a flexible rate mortgage to make initial payments more feasible could shift to a fixed-rate mortgage after they procure enough equity & attain a stable position in their career
