Looking to lower your monthly mortgage payment? Or maybe you’ve been thinking of building an addition to your home, or retiring some nagging debt. Refinancing a home loan is a common way of putting your money to work for you.
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Through time, many homeowners find themselves with better credit reports and scores than when they got their original home loan. Typically in mortgage refinancing, after substantially paying down their original loan over time, homeowners pay off the rest with a new home loan that comes at a lower interest rate and with better terms that reflect homeowners’ reliability as borrowers and increased equity—their home’s value compared to the amount owed on it.
After paying off the old loan, many use the remaining portion of the new mortgage loan for some big expenditure; to pay off debts, buy a car, add value to their home or whatever else.
It’s important to note that when the housing market buckled, many homeowners found themselves underwater on mortgages—owing more than their home was worth—so there are good and bad times to refinance. As with any money matter, understanding the process is key…and Quizzle is here to help.
Refinancing can empower homeowners—is the time right for you? Read up on mortgage refinancing with these links from the Quizzle blog and beyond:
When Does Mortgage Refinancing Really Pay?