There must be an existing loan before you could talk of home refinancing
. Usually it consist of an existing home loan being worked out in such a way that affords the person the opportunity to modify the existing contract details in order to accommodate for new details depending on the wish of the person taking the loan. It could also involve having a home equity loan which gives you the option of getting some money using your house as sitting collateral. Though it might be seen to look a bit technical, if you can't do it yourself, you can find a professional or a home analyst to give you various options available. In working out the best modalities for your mortgages, the following must be noted. Determine the monthly payment that fits your budget. If you have increased monthly income, then it is better for you to increase your monthly repayments. Possibly reduce the interest rate of your existing plan so as to reduce overall interest rate. You can reduce the interest rates by negotiating with your lender. Also if you there is a drop in your monthly income, you can also reduce your monthly repayment as you want and to be approved by your lending institution. Sometimes, there is a need for refinancing when you have a large sum of loan taken with little repayment time. The best option is to re-negotiate and ask for additional time with less monthly payment. This allows you to spend your money wisely and at the same time repaying your debt.