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How Does Mortgage Refinance Reduce Monthly Payments?
If one is refinancing between two 30 year fixed loans that have the same interest rate, the payment could be reduced by extending a loan that has 25 years to go [for example] and adding 5 more years to it. This will hold true, however, if you have made principle reductions over and above the monthly payments prior to refinancing.
It's possible that your first mortgage was acquired under a different set of circumstance that have changed. For example, if employment history, credit, income have all had positive changes it's possible the interest rate on NEW mortgage would go down and allow for lower payments.
Next: Would you like to experiment with a refinance calculator or would you like to be matched with up to five mortgage refinance lenders?
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