The document discusses refinancing and reasons for refinancing a loan. Refinancing means taking out a new loan to replace an existing loan, often at a lower interest rate. Reasons for refinancing include lowering interest rates to reduce monthly payments, switching to a fixed rate to gain certainty around payments, paying off the loan sooner by reducing the term, and consolidating multiple mortgages into one payment. Refinancing can also provide cash out against the equity in a property that can be used for home improvements, education expenses, or other major purchases.

1. REFINANCING

2. FINANCING
Financing means taking out a
loan against a collateral
REFINANCING
Refinancing means taking the
original loan and re-doing it or
financing it again for the purpose
of getting a better package

3. REASONS FOR REFINANCING
LOWER INTEREST RATE
To save monday on interest ratem which helps reducing
monthly mortgage payments.
REDUCED LOAN TERM
Helps pay the debt sooner. Switching to a fixed-rate
mortgage—or to an adjustable-rate one—can make
sense depending on the rates and how long you plan to
remain in your current home
LOCK IN FIXED RATE
Converting from an adjustable rate to a fixed rate.
reduces uncertainity of paying high monthly payments

4. REASONS FOR REFINANCING
REFINANCE CASH OUT
To get additional money on the same loan. This money
is against the equity left in the propery. This is dealt as
either a second loan and can also be consolidated with
the first one. Wiht the properties where the Mortgage is
paid off, this refinancing serves as a new loan (Mortgage
on th property)
REFINANCE DEBT CONSOLIDATION
Help combine two or more mortgages on the same
property. This reduces the hustle of paying two
different payments, instead the mortgage bearer pays
one monthly payment against a single consolidated laon.

5. Refinance Cash Out

6. BENEFITS OF
REFINANCE
CASHOUT
Invest In Your Home, if used for Home
Improvements or Repairs Increases the market
value of a house
Invest In Your Future (education, health care)
Major Purchases (Tuition, car, vacation)