How Can You Refinance Home Equity Loans?
Refinancing your home equity mortgage allows you to get a better rate or terms. It also provides you with the convenience of replacing your current mortgage loan with a new one so that you can pull out your money any time you want. Most people refinance their mortgage to get lower interest rates than their current mortgage loan – it wouldn’t make sense to refinance a mortgage for a higher interest rate. Refinancing helps reduce monthly payments spent on mortgage interest. Most people make the mistake of waiting months or years until the interest rate is 2% lower than their current mortgage to refinance their loan. The real test of refinancing mortgages is calculating how long it will take for you to recover the closing cost using the new lower payment and compare it to how long you plan on living in the house. To do this, get the monthly payment of the refinanced loan and divide its difference with the closing costs of your new transaction. This is the number of months it will take for
