Mortgage Refinancing
Advantages
Refinancing is where a client obtains a new mortgage often to reduce monthly payments,
lower interest rates, take cash out for large purchases or simply to change mortgage
companies. Often people refinance when they have equity in their home, which is the
difference between the amount owed to the mortgage company and the value of the home.
Reduce monthly repayment
Acquire better loan features
Allows you to consolidate multiple debts into one repayment
Save money by paying a lower interest rate
Use equity in your home to get additional cash
Disadvantages
Disadvantages
If getting cash out this will increase your mortgage repayment and the size of your mortgage and reduce the equity in your home
May increase or extend the length / term of your mortgage (often resetting to 30 years)
There may be fees or costs to refinance
The valuation of your property may come back lower than you expected
Short term debts consolidated into a refinance are paid out over a longer period of time
Short term debts consolidated into a refinance are paid out over a longer period of time
Short term debts consolidated into a refinance are paid out over a longer period of time
