Is this refinance?
Dear Kind People:
I wanted to ask a question as a newbie or someone who is renewing their mortgage first time. In 2021 bought a house whose payments went up because of variable rate increases. Although I was able to ride out the wave but I need some breather as inflation is impacting my finances. I know I could have not bought the house and continue living on rent but i got pressured into it. There fore, when I am renewing now,I am asking the bank to extend my amortization back to 25 years from the 20 years I am supposed to renew.
The first financial advisor at the bank said this is not a refinance and it is just extending amortization and I have to fill an application stating so and I would simply sign extension of my amortization. She is able to use existing appraisal. The second advisor the bank booked me, as the first one was away, with (new probably at the job) told me she never did any application like that and is still considered refinance (maybe) and she is was creating a refinance application for me. I stopped her filling the application and I am now in the process of meeting first one.
Mortgage is high ration and insured. Can some please guide. I have no issues providing documents but worry the appraisal amount will not be as good as 2021 if I am refinancing.
Is this refinance or no and what can be done?
Appreciate and thanks in advance