This is because the initial amount of debt on the property was a little too high to begin with, and refinancing usually allows up to 80% of the value of a house to use for a loan.

calculating payments on a mortgage process of applying for a mortgage common mortgage

For example, in addition to getting a home loan, you can have an interest only mortgage.

This two can be turned as a wonderful idea to use your biggest property to get rid of monthly payments for the mortgage.

Home refinance in other terms can be called refund on the same property.

Financial institutions offer these loans by providing an introductory interest rate.

There are of course other reasons to refinance, even if you can not get a rate that is better than two points.