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When refinancing a mortgage with a long-term fixed interest rate

How you refinance your mortgage depends on your individual case. The need for refinancing and the ideal form will depend on the repayment plan and the outlook for the family’s future. For households that meet the following conditions, it will be easier to repay if you take out a mortgage at a fixed interest rate. This is the case if the household income does not change significantly, for example, if the husband works for a company with a stable income and the child also goes on to a national public school. Fixed interest rates are also recommended for those who do not intend to increase their savings and pay off at once. For those who will change their lives due to job changes, independence, or marriage in the future, it is better to have less fluctuation factors. For these people, refinancing to a fixed-rate mortgage, which is less susceptible to the risk of interest rate fluctuations, is recommended. Also, for those who are likely to lose income in the future, there is a method of increasing the mortgage repayment amount only at the beginning and then gradually reducing the monthly burden. This is the case if one of the couples intends to quit their job or plans to change jobs once parenting begins. If refinancing a mortgage can reduce your total repayment amount, you should consider those who are likely to spend more in the future due to business relationships such as childcare and long-term care. If you buy a house before or after you start raising a child, you will spend a lot of money other than repayment of the loan in the first half of the mortgage repayment due to the effects of child support, etc. Therefore, there is also a method of refinancing to a fixed interest rate type mortgage loan and then a floating interest rate type mixed plan mortgage for 10 years until the child-rearing is settled and the household can afford it. Changing the interest rate terms of a mortgage by refinancing will make the decision whether or not to make a reliable future outlook.


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