A mortgage refinance is the process of taking out a new loan, and using the proceeds to pay off your old one.
Generally, you would do this to make a change in the structure of your debt in order to get more money, a lower monthly payment, or a shorter pay-off schedule. At Priority, we detail any benefits from any changes in your financial structure before you embark on the process.
You would trade-up your mortgage for the same reason that you would trade-up your job, car, or living arrangement because circumstances change. What your need out of a mortgage today may be different from what you needed five years ago. There are many reasons why people refinance their home loans including:
roll all your debts into one
take advantage of a cheaper interest rate or lower fees
take advantage of other features offered by other products
switch from a fixed to variable rate loan, or vice-versa
access the equity in your home to use for renovations, holidays, other investments