The most common reason to refinance your mortgage is that interest rates have gone down. But truth be told; there are plenty of reasons to refinance your home mortgage. Daisy Raouph, your Pickering mortgage advisor, offers you reasons you might want to consider refinancing your mortgage.
Rates Go Down
Even if rates haven’t gone down, the current rates could be lower than what you are paying right now. Perhaps you took out your home loan several years ago when the rate had spiked, a lower rate will save you a lot of money month to month and in the long run.
Your Credit Score Went Up
Even when rates are going up, you might still qualify for a lower rate if your credit score has improved. Mortgages based on credit score can vary greatly, so you might want to look into that.
You Want a Lower Monthly Payment
In the event of a financial emergency, you might want to have your monthly mortgage payment lowered. Even if interest rates have not gone down, you can refinance for a longer term and reduce your monthly payments.
There is no magic here, you are simply adding more years of payments to your mortgage at the same interest rate. And while it will lower your monthly payment, you will pay more interest in the long run. Something you need to consider when making such a move.
To Reduce Loan Term
If you wish to do the exact opposite and lower the term of your loan, you need to refinance. Often, shorter-term loans come with better interest rates so this is an option many homeowners desire. This way, you can pay off your home loan much quicker without breaking the bank.
Get Fixed-Rate Mortgage
If you happen to have an adjustable-rate mortgage, you can refinance and get a fixed rate. This is a good idea if you think that interest rates are on the rise. This could save you a lot of money over the years.
Get Adjustable Rate
It could be that rates are moving to a lower rate and getting an adjustable-rate mortgage makes sense.
Use the Equity You Have in Your Home
If you need extra cash, you can refinance and tap into the equity you have built up in your home. Maybe you want to pay off some debt or remodel your kitchen and need a chunk of money to do so.
Maybe you are already debt-free and have a newer house that doesn’t need to be remodeled, but you would like extra cash for an exotic trip or for the car of your dreams. There are just so many ways you can use the extra cash you get when you refinance your mortgage.
Tapping into your home’s equity holds many benefits and you can do so for any number of reasons. There is no better time to access extra funds than right now. Contact Daisy Raouph and let’s see what we can do for you.