Mortgage refinancing is the process of getting a new loan to pay off your current home loan. Refinancing can lower your interest rate, shorten your loan term, and increase your equity. However, there are a few things you need to know before you go through with a refinance.
What is the meaning of mortgage?
The lender will look at your income and assets, your credit score, and your debt. If you’re refinancing to reduce your monthly payments, the lender may require you to have a low debt-to-income ratio.
You will also have to pay for your own 按揭比較 costs. Refinancing can cost up to 6% of the original loan principal. Your bank will cover this, or you can pay for it yourself.
Once you’ve decided to refinance, you’ll need to get an appraisal of your home. The appraiser will determine what you can qualify for, and if you can get a new loan with a better interest rate.
You can refinance with your current lender, or you can shop around for a better deal. Once you have a better interest rate, you can save money by making a lower payment each month.
In addition, you can also refinance your mortgage to take out cash. You can use the equity in your home to make repairs or to fund a major expense. If you have a large amount of equity, you may be able to consolidate your first and second mortgages. This can be a more affordable option than a personal loan.https://www.youtube.com/embed/qjLcsuAy2Tw