There are numerous ways that you may be able to benefit from accessing some the equity built up in your home through a mortgage refinance, including helping cover the costs of the upcoming holiday season’s gift buying, decorating and entertaining.
If your mortgage is coming up for renewal in the next four months, it’s especially important to see if it makes sense to free up some home equity, because you won’t be paying fees to break your current mortgage.
But, even if you’re partway through your current mortgage term, your mortgage agent can do the math to determine if it makes more financial sense for you refinance now or wait until you’re closer to your renewal date.
Here are some of the top ways borrowers can help their financial situation through a mortgage refinance:
- Debt consolidation: Get rid of high-interest debt (eg, credit cards and unsecured credit lines) and roll the payments into your mortgage at much lower rates, which results in lower overall interest payments and higher monthly cashflow
- Equity takeout: Gain access to the equity built up in your home to help pay for important goals/milestones such as home improvements, sending kids to school or buying an investment property
- Higher credit score: Access to equity can improve cashflow and help ensure you make timely mortgage payments, which will have a positive influence on your credit score. This will enable you to access even better mortgage rates in the future
- Lower monthly payments: Extending your mortgage amortization can lower your monthly mortgage payments, which will be particularly helpful when facing financial challenges
It’s important to carefully consider your financial goals, costs associated with refinancing and your eligibility for favourable mortgage terms before proceeding with a mortgage refinance. Consulting with a mortgage agent will help ensure you always make the most informed decisions.
Wondering if a mortgage refinance is right for you? Answers are just a call or email away!