Question by Ava D: How does refinancing mortgage lower my expenses?
Answer by Matt K
If for instance you choose the same mortgage type but get a lower interest rate, it lowers your monthly payment.
You can also refinance into a different mortgage type. Different types of mortgages require different paymount amounts – but be careful of adjustable rate mortgages that start out fixed.
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If you refinance at a lower interest rate, or over a longer period of time, your monthly payment will be lower.
Be careful though. Going from a 10 year mortgage to a 20 year mortgage, for example, just means you pay 10 years worth of interest. Also be wary of adjustable rates.
Going for refinancing mortgage can lower your expenses by giving you lower interest rates. Source: http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html