Why refinance my mortgage?

Why would you want to refinance your mortgage?

There might be lots of reasons. Some of the more obvious reasons are to cash in on lower interest rates, better loan terms, lower payments, etc.

A reason you might not have thought of is in an effort to finish paying your mortgage earlier.

How does that work?

Your current mortgage is structured in a certain way with you paying back a certain amount per month, combining interest and principle. At those rates and payments, you are scheduled to finish paying off your mortgage in, say for example, 17 more years.

Now, let's say you want to be over and done with it sooner. You can't just start giving the lender more money each month. It doesnt work like that.

You would refinance the mortgage, taking on larger monthly payments, thereby shortening the length of the loan.

Of course, to do this you better make sure you have enough monthly income to make those higher payments on a regular basis.