what is the meaning of mortgage refinancing

mario6318 · Joined: 14 May 2007 Posts: 1 1.32 Dollars($)

want to no the meaning of refinancing in mortgage..

jerry · Posted: Mon May 14, 2007 11:25 pm Post subject: RE: what is refinancing?

When you take out a loan on your home that is a mortgage just to pay off another loan against the same property, then such a process is known as refinancing/refinance. The same property is kept as the collateral for the refinance loan.

The process of getting a refinance loan is almost similar to that of taking out a mortgage. And, the costs are almost similar to that of taking a mortgage.

Read through our section on Refinance to know more on this topic.

Thanks,
Jerry.

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dbaker · Joined: 21 May 2007 Posts: 4 2.18 Dollars($)

Livio, at what point is it advantageous to refinance? I've heard people say that it's worth it to refinance if you can shave even 1/2 a point off the mortgage rate. True, or should the percentage be higher?

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Hi Dick,

I would say it is better to go with the 2% rule which suggests that if you get a 2% reduction in rates then it is beneficial to refinance.

Miller

dbaker · Joined: 21 May 2007 Posts: 4 2.18 Dollars($)

Thanks, Miller. And thanks for the link, too.

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