You are probably aware that refinancing is a way to replace your old mortgage with a new one. It’s now becoming more and more popular among homeowners in terms of reducing their interest rates and even sometimes take cash out of their home equity. What are the main benefits of mortgage refinancing? The major one is reducing your interest rate. Imagine that you now pay 8% on your mortgage and there is a chance to refinance it at 5%. Why not save so much money? That’s simply one of the best ways to improve your financial situation reducing all other kinds of debts. What also can be changed during the refinancing, is terms of the mortgage. For example, if you decide to shorten the terms from 20 to 10 years, you’ll make your loan cheaper and will pay it off faster. Alternatively, you may stretch the terms and reduce your monthly payments. So, the either way has many positive sides.
