How Does a Mortgage Refinance Work?
A mortgage refinance is the process of applying for a new loan on your current equity and using this new loan to pay out your current mortgage and other debts you may have.
There are some benefits of mortgage refinance that include:
1. Paying off your mortgage faster;
2. Possibility of lengthening the period of your mortgage and accordingly decreasing the amount you repay each month;
3. A lower interest rate;
4. Consolidation of your credit card and personal loan debts into your mortgage will result in benefit of the lower mortgage interest rate;
5. Drawing additional funds against your property for expenses of a domestic nature;
6. Possibility of getting more favorable terms than your current mortgage.