Why refinance?

Refinancing refers to the replacement of existing loan with a new loan under different terms. People may choose to refinance due to the following benefits.

#1. Better interest rate

People often choose to refinance when there are lower interest rates available in the market due to market conditions itself or the lenders are now more willing to offer them a better deal when their income or credibility has been improved over time. With this lower interest rate, people can save on their interest expenses.

#2. Lower monthly payment

The monthly mortgage payment tends to be lower when the interest rate is reduced. Another way to lower the monthly payment would be to extend your loan for a further period.

#3. Better cash flow

Lower monthly payment simply means extra cash on hand. This extra cash can be used for other investment purpose, pay off other debts or bills, home renovation, new car purchasing and so on.