What are the benefits of refinancing a mortgage?
If you’re struggling with a mortgage, or if you want to manage your assets in the future, you may find refinancing your mortgage an option. However, when considering refinancing a mortgage, it is a matter of repayment period that cannot be removed. So what is the relationship between refinancing a mortgage and the repayment period? First of all, how much repayment period must remain for refinancing a mortgage to be effective? This means that the benefits of refinancing will come out if you have 10 years or more to pay off. If the maturity period is shorter than this, the loan balance is also small, so there is almost no merit of refinancing. However, there are many people who refinance their mortgages even when they are close to repayment. This is because I refinance my mortgage for the purpose of reducing the monthly burden. Of course, extending the payment period will increase the total payment amount, but there will be merit in being able to fully pay off the mortgage. On the contrary, some people refinance to reduce the mortgage payment period. Such refinancing has a great advantage from the viewpoint of asset management.