To the question about refinancing your mortgage you can be brought by many different reasons. Refinancing is great option for creating better monthly payments for you and lowering of your existing interest rate.
Let’s look at possible advantages of mortgage refinancing:
- Lowering interest rate.
- A way to replace your adjustable rate loan by fixed-rate one.
- A way to short your loan term.
- As a term for payments becomes shorter, the amount of interest paid also becomes less.
- Get extra money to pay off your debts or improving your home facilities.
To apply for refinancing one need to do almost same steps as to apply for original mortgage, including closing up to 3% of new loan sum and payment for insurance.
Banks can usually give more precise information and estimate specific sum after receiving a filled application form.