Mortgage Refinances Explained

Have you heard the word "refinance" and wonder what does it mean? I have the answer for you! Just read below.

When people talk to you about refinancing your mortgage it just simply means paying off the current loan you have and getting a new one.

Why would you pay off a loan to just get another one? Well, home buyers are usually interested to refinance their mortgage because this a good opportunity to lower their interest payments by at least 1%. This will make a big difference in the long run.

If interest rates did go down from the first time you got your mortgage, and you want to have just one continuous low rate instead of a variable one, this is also another benefit that refinancing offers you. Simultaneously, when you reduce your mortgage by lowering the interest rate, you can also reduce the amortization period or the amount of time you will take to pay off the mortgage.

Finally, mortgage refinances will help you to build equity faster and getting your debt reduced if used correctly. As mortgage expert, I am compromised to guide and get my clients on the right path to a debt free future.

If you would like to have more information about refinancing or it sounds like it will be something beneficial for your financial situation, contact an expert to help you through the process.