Fairfax Title Company Answers How Mortgage Refinancing Works

Fairfax, Virginia (press.abc-directory.com) December 2, 2019 - Mathis Title Company, a Fairfax title company, recently published a blog called "How Mortgage Refinancing Works to help homeowners better understand the refinancing process. This can assist them in getting better refinancing deals and saving money for other investments.

Mortgage refinancing is the process of replacing an existing mortgage with a new loan, often with a loan that offers lower monthly payments, lower interest rates, or other beneficial changes in the loan program. Refinancing can also help homeowners switch to fixed-rate loan instead of an adjustable-rate mortgage or shorten the term of the loan, among other perks. Homeowners looking for a cost-efficient way loan can also borrow against their home equity to obtain money for other purchases or pay off debts, as mortgages can be repaid over longer terms than most other types of debt. These benefits allow homeowners to better manage their finances and save money on interest payments for their home and other debts, helping them achieve other financial goals.

While refinancing can be an excellent option for some homeowners, it doesn't come without risks. Extending a loan's term is not always helpful, as it can result in higher interest costs over time if your current loan is at least one-third paid, so review your terms and payment plan before choosing to refinance. Closing costs on the loan, or higher interest payments due to a "no closing cost" loan, may impact your finances if you aren't prepared for these fees as well. Finally, consider your reasons for refinancing. Cashing out a loan to receive funds for other large purchases can put careless refinancers into debt, creating a cycle of payments that can be difficult to maintain. It's important to carefully evaluate the terms of your refinancing loan, your current finances and credit, and your reasons for refinancing your home before selecting a new loan to help avoid creating a bigger financial problem.

Contact Mathis Title Company for more information about how mortgage refinancing works and to receive assistance in choosing a new loan. Founder Robin Mathis has more than 10 years of experience in the legal and real estate industries, giving her a unique perspective that provides clients with comprehensive service at all stages of the refinancing process.