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You might have heard of the term, but what is Mortgage Refinancing and what does it mean? Do you qualify? We have compiled a cheat sheet with all the answers to your questions about mortgage refinancing.

mortgage refinancing

What is Mortgage Refinancing?

In short, refinancing a mortgage is essentially replacing your old mortgage with a new one, in order to negotiate a better interest rate, change to a different lender, or borrow cash from your mortgage to pay off debts or make large purchases. When refinancing your mortgage, you are paying out your original loan by taking out a new one.

who mortgage refinance

Who can Refinance?

Mortgage Refinancing also requires sufficient equity, and a good credit rating. If refinancing is possible for you, it could be a good idea to look into it further. It is important to note, however, that you may incur fees when refinancing, which can be upwards of one thousand dollars. These fees are usually due to pre-payment, as you will be paying out your mortgage faster than the agreed upon terms.

mortgage refinance agreement

When you should Refinance

  • You want to consolidate multiple debts
  • If your lender's rate is not/no longer competitive
  • You need cash to pay for a big item (like another property)

When you should not Refinance

  • You are thinking about selling your property in the near future
  • Your credit rating has taken a hit
  • Pre-payment fees on your current loan are high
bad credit refinance stress

What if you can't refinance?

Mortgage Refinancing isn't your only way forward. We have a range of different options for those who may not be in the right situation for Mortgage Refinancing. You can contact one of our consultants for more information.

NB: Beyond Debt is not a lender. We do not provide mortgages or loans.

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