Please i will like to knowexplainwhat it means to refinance the mortgage of a house?

Deirdre
please i will like full explaination of my question.

Jeannie
A REFINANCE by definition is change the terms of existing financing by taking a new loan. You can do this at any time you see fit. It can be to lower the term (from say 30 years to 15 years), extend the term (from 30 years to say 40 years), to take your equity (the amount your house has gone up in value since it was purchased or built) as cash out for things like debt consolidation (roll all the money you owe on all you bills into one payment) or home improvements, to lower the interest you are paying on the existing loan you have, to combine a first and second mortgage into one payment. There are too many reasons to refinance. The best way to do this is to contact a mortgage broker in your area or go to a website like Lendingtree.com to find out more things for your individual situation.Some lenders have a seasoning requirement (a term that you have to be in the house before you can get a new loan) but that will not be your issue as you said you have been in the house for more than one year.

Nicole
For example if you have a mortgage for 7% you will pay at that rate for the entire length of the mortgage. If due to market conditions mortgages, with the same duration/terms as yours, are offered for say 6% it would probably pay you to refinance. Mortgage rates differ slightly from bank to bank and they are advertised frequently in newspapers etc. You would simply go to the bank or institution offering the lower rate and have them show you how much you could save per month with the lower rate. There is no charge for asking.DO NOT FORGET there will probably be closing costs which will reduce your savings.. a 1/2% reduction may not reduce your monthly payments by much but a 1% reduction, even including closing costs will reduce your monthly payments. If you are satisfied with the savings the bank would prepare a new mortgage with the new rate/payment schedule. You can refinance as many times and as often as you want.

Katlyn
Refinancing means to start a new loan. This is usually done to lower the interest rate, to extend the time frame of payments (therby lowereing them) or to get cash out.

Aurelia
refinance.means take out a new mortgage.you may need more money.anew mortgage would do this.or you might want toextend the time to pay. this would decrease your payments.you dont say why you want to now?