If you didn’t already know, there are many reasons why refinancing a mortgage could be extremely beneficial to you.
Maybe you need some extra money to renovate your home or maybe you want to pay less each month. Whatever your reasons entail, a Barrie mortgage locator like myself can help you determine if refinancing is the right thing to do.
If you already know what refinancing is or wondering why you should think about it, consider these 3 Great Reasons Why You Should Refinance Your Mortgage:
1. Decrease your payments & interest rate
One reason that people I see want to refinance their mortgage is to lower the rate of interest they are paying collectively to mortgage and expenses. With Canada seeing some of the lowest mortgage rates ever in the past year, the odds are that it is currently lower than what your current rate is. If this is the case, refinancing may be of interest to you.
Refinancing to a lower rate could potentially save you thousands of dollars when all is said and done. Doing so will also lower the amount your currently pay each month, freeing up valuable money to save or spend elsewhere.
2. Debt consolidation
Another good reason why I see people who want to refinance their home is to consolidate debts that have accumulated over time. They may have high balances on their credit cards and are paying high interest rates which can severely affect their monthly cash flow and life style. If you have at least 15% equity in your home it might be time to consider using that equity to reduce your monthly expenses before it affects your life style and credit standing.
If you already have bruised credit and have a low credit score, no problem, there are mortgage solutions for you too.
3. Change your rate type
Another reason why many people show interest in refinancing their mortgage is to change the type of rate they currently have. For example, an individual may want to switch from a variable-rate to a fixed-rate, or vice versa.
A variable rate fluctuates with the prime interest rate, rising and dropping as such. In comparison, a fixed-rate locks your mortgage in at the current rate of interest, offering those who choose this type with the peace of mind knowing exactly how much they will be paying at the end of each month. Each type is different and every person has their preferences, but a fixed-rate at some of the lowest rates we’ve seen could save you money in the long run.
Merely, locking into a fixed rate with your current lender may not be the best option, contact me to find out why.
4. Home equity cash out
If you are in need of some cash for home renovations or to start your own business, refinancing your mortgage is a reasonable option. Cashing out some of your home equity by refinancing your mortgage can provide you with the finances necessary to complete these objectives.
One important thing to remember if you are refinancing for this purpose is that you should have a good set of financial management skills in order to limit the risk of costing yourself more money down the road.
If you are seriously considering refinancing your mortgage, I can help make sure that you are set up properly and can actually afford to do so. As someone who has been involved in the Barrie mortgage industry for several years, I have successfully helped many clients benefit from refinancing.
If this is something that interests you or think may benefit you, I would be more than happy to discuss how I can help. Contact me today!
