A mortgage refinance is when you replace your existing loan with a new one on different terms with the same lender or with a new one
Why should you Refinance ?
Lower interest Rate :- Lower interest rate is the significant driver for people to refinance. Even a small change in interest rates can save you substantial amount of money
Release of your equity :- you can refinance to unlock the excess equity by borrowing additional amount.
Cashback Offer:- At times banks offer a cashback in case you refinance, generally in this case the lender will change
Change the tenure of loan
Consolidate Debts :- If you have multiple loans such as car Loan, Personal loan or credit card, you can add them all to your existing mortgage. With this you can have one single loan instalment payment and a lower interest rates on those debts transferred
New features such as Offset or Redraw
Change the structure of the loan i.e convert variable to fixed rate loan, breakup of the loans on different structure