When executed correctly, mortgage refinancing can offer homeowners an opportunity for significant savings. Despite these obvious monetary benefits, many homeowners continue to miss out on refinancing opportunities. This is mainly because they have erroneous beliefs about what it means to refinance a mortgage.
What Does It Mean to Refinance a Mortgage?
One common misconception is that mortgage refinancing means the borrower takes out another mortgage or another loan that they have to deal with. This is far from the truth. In a mortgage refinancing, your existing mortgage is altered into something more manageable, but it will be the same mortgage. It’s going to take the monthly payments you’re dealing with right now and lower them, or lower the interest rate you’re paying.
What are the Benefits?
If you have more than a year left on paying your mortgage, refinancing a mortgage can be beneficial for you. You will be able to (in some cases) cut your monthly mortgage payment in half. You will also be able to put more and more money towards the principal of the mortgage instead of paying off high interest rates month after month.
Refinancing a mortgage can save you a lot of money especially if you have the right broker to help you throughout the process. Sky Financial Corporation – The Mortgage Center offers multiple refinancing options to our clients. Contact us today to schedule an appointment with one of our financial associates. 1-800-472-9791.