Mortgage rate, a review of the basics
Consolidating two loans into one makes a big difference to the monthly budget. As a long term financial strategy, you can approach mortgage refinancing from a couple of different ways. You may wish to lower monthly payments by refinancing to a mortgage that carries a longer repayment term. This ensures lower payments, but just be aware that you will end up paying more interest on your loan in the long run. Mortgage refinancing to a shorter term loan results in higher monthly payments, but your total interest responsibility will be less and your loan will be paid off sooner.