The Basics of Loan Refinancing

HomeBlogThe Basics of Loan Refinancing

Our team at Harbor Mortgage Company has extensive experience in the home lending business. We can not only help you get a mortgage to buy a new home but also help you refinance your existing home loan. In this article, we’ll explain more about loan refinancing, how it works, and why you might want to do it.

The Basics of Loan Refinancing

When you buy a home, you take out a mortgage loan to cover the costs of the house, and then you repay that loan back over time. The value of that loan is based on the price of the home when you first bought it. However, the value of your home will increase over time due to natural market trends, so the home is probably worth more now than it was when you first moved in.

Loan refinancing allows you to create a new mortgage based on the current value of your home, giving you an influx of cash that you can use for a variety of purposes. For example, you might refinance a loan to fund home renovations. Others have used loan refinancing to pay for a child’s college education, to lower debt, or to cover medical expenses.

If you need to take out a loan for any reason, we encourage you to consider using loan refinancing.  We can answer any questions you have about the subject and help you decide if this move is right for you.