Mortgage Refinancing: When? Why? How?
Refinancing is basically the process of paying off your current home by taking out a new mortgage, either with your existing lender or through a different lender. Most people refinance their mortgages to take advantage of changes in interest rates and shorten the time it takes to pay off their loans.
While mortgage refinancing is a promising financial tool to reduce your burden, you also need to remember that each mortgage solution and lender works differently. This is why you need to study the pros and cons of mortgage refinancing before striking that deal.
As confusing as it may sound, you can always rely on the property loan specialists at Lend & Co to read through the fine print and find the best option for your financial needs.
Why Refinance the Mortgage?
Since you are already the owner of one house with a mortgage, getting a second mortgage for refinancing is easier than you think. But the question remains: should you pursue the option of refinancing or not?
Before getting into the details of when you should refinance, here are some reasons why homeowners think about refinancing:
- Lower Interest Rate
- Shortening or Increasing the Mortgage Tenure
- To Switch the Type of Mortgage
- Raising Funds by Tapping into the Home Equity
When to Seek Mortgage Refinancing Solutions?
Refinancing can set you back by about 3% to 6% of the loan’s principal amount. This is why it’s crucial to determine whether you should refinance. If you’re wondering when is the best time to refinance, here’s a general rule of thumb: The rule of thumb suggests that it’s best to refinance when the interest rates are at least 1% lower than your current rate.
Why Come to Lend & Co?
Before you can even start figuring out if you’re saving money or not, you’ll need to look at all the refinancing options on the market. Why rack your brains chasing lenders and crunching the numbers when a professional consultant can do it all for you?
Also, another thing to remember is that the property loan specialists at Lend & Co will do it all in no time with zero margins for error. We can also use our extensive network of lenders, which gives you access to many mortgage options you might not have known about otherwise.
Drop down to Lend & Co or contact us today to seek advice on your mortgage refinancing solutions and make your life easier.