This video discusses mortgage refinancing and when a person should consider getting his or her mortgage refinanced. There are several times when a refinancing option would be good. One time when refinancing is an excellent idea is when the homeowner has signed up with a balloon deal just to get approved for a mortgage. That situation works the same way as when someone takes a high-interest auto loan just to get a car. It’s wise to make solid payments for about six months and then apply for refinancing to get a much lower interest rate and a more comfortable payment.
Another time a homeowner may want to refinance his or her vehicle is if that person desires to tap into some of the equity in the home. Maybe an emergency has arisen, and the individual needs access to the equity. Perhaps the individual desires to do home renovations or consolidate debt. This would be an awesome time to refinance the home.
Another time to refinance a mortgage deal is if the homeowner wants to switch the type of mortgage that he or she has. For example, maybe the person wants to change from an adjustable-rate mortgage to a fixed-rate mortgage. There’s nothing wrong with applying for a refinance mortgage deal at that time.