Mortgage refinancing should not be confused with a second mortgage as they are not the same. Mortgage refinancing will provide new money to the borrower, and will be used to pay off the original mortgage, usually with better mortgage terms. Be mindful that refinancing is not the only option for struggling, responsible homeowners. But by taking the proper steps before securing a refinance loan, like performing due diligence among other things, will allow the borrower to view both the advantages and disadvantages of whether refinancing is a good choice.
Advantages of Mortgage Refinancing
Disadvantages of Mortgage Refinancing
Due to the fact that lenders take a security interest in property, many of the same closing costs associated with the original mortgage may be present. Before moving forward, borrowers should determine what closing costs and other fees might be associated with refinancing.
With refinancing activity driving home owners to explore options for lowering interest rates, this is certainly a loan to be considered.