Buying or Refinancing a House?

Owning a house may end up being your biggest investment. It helps you build up equity, live your dreams, have control over costs, and have living security. Refinancing a house involves buying a home on a mortgage and replacing its payment with a loan.

Some reasons for refinancing a house include; reducing interest, cutting monthly payments, and enjoying part of the house equity.

Also, the process required to refinance a house is similar to getting a mortgage to buy a home.

Advantages of Refinancing a House over Purchasing a New House

Below are some reasons some people prefer to refinance a house;

  • To save the stress of moving into a new home.
  • It provides the possibility to extend the loan term and cut monthly payments.
  • You have the freedom of up to three working days to decide  refinancy a house.

How does Refinance a House Work?

Refinancing Your House

Refinancing involves buying a house and getting a mortgage to pay for the home with principal and interest. In this way, the house seller gets paid through the mortgage.

It is simply a process of paying off a house loan with a new mortgage.

The documents requirements for refinancing a house are the same as getting an original mortgage.

Buying a New House or Refinancing? Which is better?

Refinancing a house gives you the flexibility to pay less monthly plus other added advantages discussed earlier but buying a new home will give you the freedom to choose a different type of house that satisfies your needs.

So, the ball is in your court.


Whether you choose to refinance a house or buy a new one, the result of both of them is owning a home which is better than renting. Owning a home stands out to be one of the greatest investments ever.