What does re-mortgaging a house mean?

Hi I’m just trying to learn personal financing since I’m turning 19 this year and it won’t be too long before I might have to buy a house of my own. I know what a mortgage is but I have no idea how a RE-mortgage works.

Thanks.

Become an Expert →

Answer #1

Re-mortgage means that:

you have credit at “Bank A” and you use the money to buy your house.
some years later, “Bank B” gives you a better offer. You’d pay lower rates for the same amount of credit there.
you get credit from “Bank B”
you use the credit money to pay your debts at “Bank A”
now “Bank B” is your houses financier.

Answer #2

It generally means you are either renegotiating the terms of your mortgage or starting a new loan with new bank. You would do this because rates have dropped, or because you need money and and are taking a bigger loan against the house. There really is no difference in the mortgage itself other than the terms (amount, rate & duration). There is nothing different in how it is calculated.

We remortgaged our house ten years ago. We were 11 years into a 30 year mortgage with a fairly high rate. We were able to get a new mortgage that gave us $30,000 more than we owed (we used it for a home remodel), got a much lower rate, and only for 15 years. In the end our monthly payment was almost the same because of the lower rate. I only have 5 more years and I own the house outright! 4 years ahead of my original mortgage.

Answer #3

O.O sounds like your old mortgage had a really high interest rate.

Answer #4

Yeah it was pretty high. I don’t remember exactly, but it was over 10%. Now I am under 6%. I could refinance again and get a lower rate, but I wouldn’t gain anything now because I am so far into my current mortgage, and most of the interest has been paid already.

More Like This

How people finish to pay for a house? - 1 Answers
How people finish to pay for a house. Lets say if somebody has a lot of cash to pay for a house that means that he pays for t...
Do I claim the house on my taxes? - 1 Answers
My mother passed away in August of 2006. She left the house we had to me, and the deed was put in my name in 2007. I didn't o...
What dose it mean if my rent is in review ?? - 1 Answers
The question kinda asks all , if some could get back to me asap ;) thanks .. Its renting as in a house btw :l
When you're a professional pirate you're always in the best o - 1 Answers
When you're a professional pirate you're always in the best of company?
One off payment means? - 1 Answers
does that mean, its justone payment? someone selling something that im intrestead in but next to it it says, 'one off payment...
How can a low income single mother with bad credit buy a hous - 1 Answers
How can a low income single mother with bad credit buy a house?
What does maximum income mean (apartments)? - 2 Answers
I'm trying to find an apartment, and everywhere has a "maximum income" limit. Does that mean I have to make at least that muc...
Mortgage loan - 3 Answers
What's the process to get a mortgage loan? My parents need it. Has anyone done it? Ugh.
What does 'task' mean on this application? - 1 Answers
On this application in the list of hourly positions that I'm supposed to check off which I'm applying for, one of them is jus...
What does "advance from overdraft protection account" mean? - 1 Answers
Im checking my back statement to and i saw that they charged me that but m not really sure what it means.

Ask an advisor one-on-one!

What does re-mortgaging a house mean?

We Are Mortgages

Mortgage Brokers Melbourne

Z Reverse Mortgage

Ishakis Finance Report Mortga...

Cozmo Mortgages