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What is refinancing a mortgage?
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28th Oct 2009 by Gary
Refinancing your mortgage is the same as refinancing your home. You're simply getting another loan which would pay off the original. Some homeowners do this to raise cash or to get a better interest rate, which would lower the monthly mortgage payments. Because there are closing costs with every loan you take out, you must take those costs into consideration if your purpose is to lower monthly payments. If the costs are too high, you should measure that against what that would raise to your monthly costs for the duration of the new loan in order to see if it's worth the time and effort.
Refinancing your mortgage is the same as refinancing your home. You're simply getting another loan which would pay off the original. Some homeowners do this to raise cash or to get a better interest rate, which would lower the monthly mortgage payments. Because there are closing costs with every loan you take out, you must take those costs into consideration if your purpose is to lower monthly payments. If the costs are too high, you should measure that against what that would raise to your monthly costs for the duration of the new loan in order to see if it's worth the time and effort.
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27th Oct 2009 In Finance
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