My youngest sister and her boyfriend have been thinking about buying their own home. She has been renting (as well as he) for the last 7 years! They are finally tired of putting money in someone else’s pockets and have decided to begin their search for properties! The last time she and I spoke, we were talking about the different types of mortgages that are out there. They are looking into a 20 year fixed mortgage!

My dad just refinanced his home about a year ago, to lower the payments and the interests rate. When he originally purchased the home, his rate was around 10%. When he refinanced, he knocked off 7 years on the mortgage, lowered the payment by $80 and the interest rate drop to 4.25%. He was paying way too much before, now he’s saving so much by lowering the payment but also knocking years off of the term!

In places where the market is very competitive, someone could benefit from something like a Remortgage. Which is paying off one mortgage with the proceeds of another. People do this to release capital or reduce their interests rate. Some people even take out home loans like secured loans for things like home improvements. These loans secure the home (as an asset) to the loan and is taken out against the equity.