Monday, June 1, 2020

You can repay a loan with a mortgage refinance

With the possibility of mortgage refinance, one can take out a personal loan against one’s mortgage, and then work out a new repayment plan for the newly refinanced mortgage. You may be thinking, well why would I need another loan when I already have a mortgage loan to pay off. But the daily realities of life often dictate that people find themselves needing as much financial help as they can get given how costly the cost of living is.

There are a number of reasons why those who already have a mortgage loan would want to take out another loan against their existing mortgage loan. One of the most compelling reasons is that of financing educational endeavours, like tuition costs for one’s children or oneself for that matter. Investing in a potentially lucrative project that requires capital is another reason so is starting a business, to name just a few. Whatever the reason, a mortgage refinance can allow one to take out a loan against the mortgage, which essentially means the loan amount will be added onto the existing mortgage repayment, and then a new repayment arrangement can be established as suits the creditor and debtor.

Of course it goes without saying that a mortgage refinance will extend the repayment terms of the original mortgage agreement and even the repayment amount. However, this is a small price to pay for the possibility of realising a sought after goal.