How much of an impact can refinancing a home mortgage have on your personal fiscal situation? Offering a blanket answer to such a question is difficult. Some may have much more costly mortgages with lengthier terms than others. Similarly, someone else might have a worse fiscal situation than another borrower.
So can any general answer be given to questions about whether or not refinancing home mortgage loans be given?
In the broadest of senses, a newer and better mortgage means the overall cost of the mortgage will be lowered. This means less money will go to the financing institution and the borrower will be able to use the money for other purposes.
Would it not be better to pay less than more for a mortgage? There is no reason whatsoever to pay more for a mortgage when a better rate can be acquired. Refinancing to a better mortgage alone should lead to an infusion of cash that would automatically help improve your finances. Again, it would be difficult not to improve your finances when you acquire better interest rates on a loan.
Well, the one exception for that would be if the money saved was squandered as opposed to being effectively saved. You do not want to refinance home mortgage terms only to lose the money through bad management.