Refinance Mortgage Rate ,The Key to Lower Repayments (1)

So that interest rate has dropped but your current mortgage still has you high and dry on your current rate? Stop worrying and refinance that mortgage rate.
Refinancing fundamentally replaces your current mortgage with another. The current mortgage provider is repaid and you have a debt to the new provider under its terms.
The advantage here is that the new provider can give you the benefits of the


lower mortgage rate which, in turn, can lower your every month expense. If the rate is even 1 point lower than your current rate, you might save money.
Your current provider won't let you go that easily. Most mortgages will have a penalty for repaying the loan that early. Some refinancing providers will pay this cost for you, with others it is down to you. The trick is to ensure the benefits of the lower rate, outweigh the initial cost to refinance.