Describing Refinancing The Mortgage On Your Home
To explain mortgage refinancing, think of it like this. Someone lent you money some time ago. You don’t have that money in your bank account, of course, because you gave it to the person you bought your house from in the first place. You owe the bank the money, and you don’t have it any more.
The current situation is this: the bank has your title deed, and you have a debt, a mortgage.
You make payments on this mortgage every month. Most of each monthly payment will be interest, and a very small proportion will be a repayment of some of the original loan.
We can explain mortgage refinancing once you understand why there is so much interest in each monthly payment. The bank sets your monthly payment just high enough to cover the interest they want you to pay, plus just a very small amount extra. Only the extra goes […]
Original post by mikejohns