Remortgage is another term for refinance. When you remortgage your loan you are looking to either obtain cash at closing, lower your monthly payment, restructure the terms of your loan, or consolidate debt.

While the term remortgage is popularly used in the United Kingdom, the term has the same meaning ( refinance ) in the United States.

Many people look into remortgaging, commonly referred to as refinancing their home when they are on an ARM, aka Adjustable Rate Mortgage loan, before the loan makes it's first adjustment. Most often adjustable rate mortgages will have a rate and monthly mortgage payment increase at the time of it's first adjustment period. Therefore, many consumers remortgage to either switch to a fixed rate mortgage at this time and then they no longer have to worry about the rate and/or payment increasing ever again, or they refinance into another ARM loan because that is the best loan choice for their needs. A new ARM loan will still normally provide them with a lower rate and payment than a fixed rate and depending on the consumer's situation may be the best choice.

 

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