Refinancing your mortgage involves replacing an existing mortgage loan with another loan for the same property. Refinancing is usually undertaken for a number of reasons:
- to reduce interest by refinancing with a lower rate loan
- to increase the loan amount and pay off other debts
- to reduce the payment instalments, often by taking a longer term loan
- to reduce risk, eg by moving from a variable to a fixed rate loan
- to use some of the equity that has accumulated
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