Assess your Refinancing Options
Refinancing a home means replacing your current mortgage loan with a completely new one. Up to 80% of the appraised property value of your home can be used for, debt consolidation, paying off high-interest credit cards and loans, home improvements and renovations, education, dream vacations, car loans, and personal expenses.
Refinancing at Renewal
When your mortgage is due for renewal, it is an ideal time for your Mortgage Broker to go shopping on your behalf for the best interest rate and options. Increased competition for your mortgage means more options and lower rates, and big savings over the life of your new mortgage.
Refinancing for Investment Purposes
Your home is your largest financial asset. It can also be a financial tool when you use the value of your home as a piggy bank to transform your equity into cash. With cash-out refinancing, you refinance your mortgage for more than you currently owe and use the additional funds for investment purposes. With mortgage rates so low, your return on investment increases. Alternatively, refinancing your mortgage can be used to lower your interest rate and consolidate your debt.
Refinancing for Debt Consolidation
Refinancing is one tried and true solution of high-interest costs on credit cards or other consumer debt, we can help!
Many unsecured lenders charge high-interest rates on debt owing, making it impossible to pay off without the help of a lower interest solution. This is where it can really pay off to seek out the help of a Mortgage Professional if you currently own a home with available equity and have high-interest credit cards and/or bills, refinancing to consolidate your debt may make sense for you. Our trusted lending partners offer mortgage solutions to help consolidate your debt and have you come out the other end paying lower payments while still getting the debt paid off faster than you would have otherwise.
When is it Smart to Refinance?
As a general rule, refinancing that is, paying off your current mortgage and taking out a new loan at a lower interest rate may be worthwhile if it saves you money. It’s as simple as that. There are costs to refinancing, of course. Your costs could be penalties for refinancing, including fees, a new property appraisal (if required), and potentially title insurance and legal fees, but you’ll save money in the long run.
So, when will you most likely save money? There are three basic scenarios that generally work in your favour:
- Interest rates are dropping, and you are locked in at a rate much higher than the current market rates.
- You can reduce your overall monthly payments enough to offset any costs of refinancing penalties.
- You have credit card debt that is not getting paid off, your payments are too high, and you are finding yourself in financial difficulty.
Contact us at 604-614-6899, to see if refinancing is right for you. One call alone could save you thousands of dollars!