When your mortgage renewal time comes around, don’t sign on the dotted line without researching all the available options. By skipping this step, you may miss out on the opportunity to refinance your mortgage and get a better rate than your current one, or to access some equity to pay off debts or invest in your home. Instead, reach out to a mortgage advisor to discuss your financial goals before you make any decisions with your current lender. They can provide you with all the options available to you, and also tell you everything you need to know about refinancing mortgages. But first, let us show you exactly how a refinance might benefit you so you can make a more informed decision when meeting with your advisor.
Access Better Rates
When you refinance, you can take advantage of a completely new mortgage amount, interest rate, and amortization schedule. If you can access a better rate option, you can save a lot of money over time.
Free Up Funds
By refinancing, you may also be able to access some of your home’s value. The extra money can help you to pay for home projects like a renovation or to add to your investment plan.
Pay Back Debt
If you have enough equity in your home, a refinance may be able to help you pay off some of your high-interest debt. Through a variety of refinancing options, you can consolidate all your outstanding debts like your credit card and car loan into one low monthly payment.
If you’re in the position to make a monthly payment that is higher than usual, you may want to reduce your mortgage length. Switching from a 30-year down to a 20 or 15-year mortgage allows you to build equity quicker and save more money on the fees.
Pay It Off Sooner
Refinancing your loan down to a shorter loan period can also help you to pay off the mortgage sooner. The payments may rise, but if you have the extra money on hand, you can save a large amount of interest over the life of the loan.
Call us today and talk to one of our mortgage advisors about how we can help you reach your financial goals.