In order to successfully understand the home refinancing process, you should learn some of the key terms that underlie the process. The two key elements involved in the home refinancing process are lowering your interest rate while at the same time helping lower your month-to-month home mortgage payments by adding an additional, secondary mortgage. The term subordination might come up in some instances during the home loan refinancing process.
Anyone who bought their home using a fixed-rate mortgage probably knows that the market has its ups and downs, whereas they’re not expected to pay anything but their original, fixed mortgage rate. If the interest rate goes up at a given time, you know you’ve been wise since your rate remains lower. There are a lot more things to think about such as the pros and cons of refinancing, though, if the market rate decreases.