With a refinance, you replace your mortgage loan with a new loan and pay off the old mortgage with funds from the new one. You typically refinance to save on rates, however it can accomplish a lot more than just lower interest. You can also restructure to shorten the loan term and save more on interest. Refinancing can also allow you to access the equity that you have in your home allowing you to pay off debts, do home improvements or take care of educational expenses.
Should I Refinance My Mortgage?
Refinancing is a good option to pull out equity to consolidate debt, home improvements, investments, college expenses, and more. It is a great way to regain control of your monthly expenses.
In Ontario, mortgage refinance is gaining its popularity day by day because of a number of reasons. The most common reasons are;
- Reduce the total interest paid over the life of the mortgage
- Reduce the cost of each monthly payment
- Shorten the length of the mortgage
- Change rate type (for example, from adjustable rate to fixed rate)
- Eliminate mortgage insurance premiums
- Draw cash out to pay off other expenses or higher-interest debts
A timely refinance can do wonders for your bank account. See for yourself.
However, it is recommended that before refinancing, you should always speak to a professional mortgage broker in Ontario to gain tips on saving, and planning ahead so you know you're making the proper decision. Call us any time to review your situation. Our consultations are quick, easy and best of all, free.
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