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What to know about refinancing your house.
For most of us it is a necessary evil to pay a whole lot of money to a financial institution for the privilege of borrowing money to finance the home of our dreams.
Before looking at the advantages and disadvantages of refinancing your house, we need to examine the dynamics of home finance.
How much does a mortgage bond cost?

That depends on three factors:
1.The purchase price;
2.The interest rate (averaged over the duration of the loan period);
3.The loan period-5, 10, 20, or 30 years.
The purchase price depends on what is happening in your local property market. If the market is booming, you must expect to pay more. It is a seller's market, and you will not be able to strike a negotiated bargain-and what you pay is not likely to be close the the actual value of the property. Where it is a buyer's market, and the market is down' you will be able to negotiate a good deal.
The interest rate will depend on your country's / region's economic health. The healthier the economy is the lower the rate is likely to be, and vice-versa.
The shorter the loan period is, the more you will have to pay each month, but the total amount paid will be that much lower.
Look at an example (purely illustrative figures)-say, a home of 1,000,000 (in your currency) at an interest rate of, say, 10% per annum:
5 year period-repayment = 21,247 per month; total = 1,274,822; interest = 274,822.
10 year period-repayment = 13,215 per month; total = 1,585,809; interest = 585,809.
20 year period-repayment = 9,650 per month; total = 2,316,052; interest = 1,316,052.
30 year period-repayment = 8,776 per month; total = 3,159,258; interest = 2,159,258.
Refinancing your house - advantages and disadvantages
Now, just looking at the above 20-year bond-if you do not pay any extra amounts-the accumulated capital portion repaid is:
Year 1 - 1.72% = 17,152
Year 5 - 10.26% = 102,634
Year 10 - 27.05% = 270,521
Year 15 - 54,67% = 546,748
Remember, this is an illustration. Your actual picture may differ by a large amount, but the principle is the same.
If the financial institution will advance back to you, some or all the capital paid to date, you may be able to refinance your house for the amounts shown.
Why would you want to draw some of the capital?
This is a vitally important question, and you must know the answer. If it is to:
Settle a mountain of other debt-You are cutting your own throat. You may feel relief from the pressure you have

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