Mortgage rate A review of the basics
Many homeowners consider mortgage refinancing to access the equity in their homes for purposes of paying down credit card debt or financing home improvements. The interest on a refinanced mortgage would be tax deductible, whereas the monthly interest payments on consumer debt is not. Many homeowners use mortgage refinancing in order to pay their mortgage debt off faster. Mortgage refinancing to one with a shorter term length results in higher monthly payments but quicker payoff and lower interest over the life of the loan. Conversely, if you refinance to a mortgage with a longer repayment term you will enjoy lower monthly payments but a higher aggregate amount of interest in the end.