Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Refinance Tips and other Mortgages topics.
The math involved with home mortgages is easy to understand if you look at it in the right perspective. You start off borrowing a certain amount of money for a certain amount of years and agree to pay it off little by little. Let's say you are 15 years into a 30 year mortgage and interest rates have gone down, as they are now. You have spent 15 years reducing your principle balance on your loan, which means that if you choose to refinance, you will be paying the same amount of money off, but buying yourself an extra 15 years to pay it down… and at a lower rate, too.
Refinancing home mortgages to extend the term is a common way that people can reduce their monthly housing expenditure. It is also great for people with built up equity that wish to draw some of that out. If this interests you, talk to a mortgage broker about a ‘rate & term' option for refinancing home mortgages such as yours. You will have no problem getting their attention if you fit the description above.