You bought a loan and your business is not  picking up fast  and when  you cannot pay the interest rate,  the best way to escape from this problem is that you can go for refinancing your loan. Refinancing your loan has some notable advantages, basically refinancing helps you to save money,  extends the duration of payment which gives you a relief about paying it back and also if you have any other balances to be paid like your credit card bills you can do it with the help of refinancing mortgage but if you do not have a good credit history this idea will become a failure because you need to pay high interest rates.

Flow Example of refinancing a loan

For example: suppose you lend $ 6,00,000 for your property and you pay interest and the principal amount and you have almost covered 3,00,000 $ in 2 years and you cannot pay the balance principal rate and also the interest rate, due to the pressure you go to refinancing mortgage and add 3,00,000$  which contributes not only to pay the existing  loan but also you can pay other bills. A temporary relief can happen due to refinancing your loan because of duration and it saves money.

Generally speaking, you go for mortgage for reducing the interest rate and by reducing it you save a lot of money on it. But if you do not have a good credit history, FICO is an organization which gives credit score for each mortgagable property, if you have a poor score you need to change it  otherwise you have to give higher interest rate. Just check with your bank and pay back the balances to any creditors who have given the bad remarks about you, you can change it by paying the balance and also asking the creditors to erase the remarks. If you have bad remarks on credit history you will get a loan but with higher rate of interest, you need to correct all the bad history records before you go for a refinancing loan.