When Should I Refinance My Home or Mortgage?

Refinancing is getting a new mortgage to replace your current loan or is like re-buying your home.

Some people use refinancing to get a loan on the equity of their property. Others, decide to use refinancing in order to lengthen their mortgage term.

ClearPath Lending specialists point out that refinancing a home can be done for many reasons. Some of these reasons include: reduce the term of your loan, get a better interest rate, or remove an ex-partner from liability on the mortgage (in the case of a divorce).

ClearPath Lending specialists do not recommend refinancing to extend the term or take money out of your mortgage. They indicate that the longer the term of a loan, the bigger the interest.

To sum up, ClearPath Lending specialists explain that refinancing your home is like buying it back.