What is Refinancing?

“Refinancing” means taking out another loan, usually one with better terms, and using it to pay off your original mortgage. I know. This sounds kind of like paying off a credit card bill with another credit card. But trust me. It’s not.

First off, refinancing is a lot less risky than using a credit card to pay off another credit card (which is known as a “balance transfer”).

Second off, as long you as you keep making your monthly payments and find a loan that better meets your financial needs, you will not be in a worse position than before (unlike a person who simply shuffles around their debt).

Refinancing goes something like this:

1. Qualify for a new loan that better meets your needs
2. Pay off your initial loan (using your new loan)
3. Start paying off your new loan

If your current plan is not working for you, get in touch with a mortgage consultant to discuss your options.