Refinancing your home mortgage allows you to pay off your original mortgage with a new loan. Typically, people refinance their original mortgage loan for one or more reasons:
Typically, lenders will use your Combined Loan-to-Value (CLTV) ratio to understand your ability to take on new debt. To generate your CLTV on your own, follow these steps:
to earn a better interest rate,
to convert a variable rate to a fixed rate (or vice-versa),
to reduce monthly payments by extending the repayment term of the loan , or
to reduce interest charges paid over the life of the loan by reducing the repayment term of the loan.