If you haven’t re-financed your mortgage in the last few years, then it’s probably time that you looked at it. Here’s why:
- Lower your monthly repayment
Chances are that you’ll be able to secure a lower interest rate now than you could a few years ago. Lenders are also more competitive now so you could get more benefits, lower fees, etc. Even if you’re having no trouble making your current repayment, you could lower your rate, keep your repayments the same and pay off your loan faster.
- Total interest paid on your mortgage could be reduced
Depending on the terms of your current loan, the costs of refinancing and your new interest rate, you could pay less interest in total on your loan. Make sure you’re thorough with your calculations and all the costs associated - or ask us to run some numbers for you - just to make sure they add up.
- Pay off your mortgage faster
When you re-finance, you can decrease the term of your loan. You may be earning more now than when you originally secured the loan, so you could increase repayments, decrease the term and pay your loan off faster.
- Unlock the equity in your home
Depending on how long you’ve owned your home, it’s highly likely that the value of your home has increased. Refinancing your mortgage can allow you to access some of that equity or get a line of credit based. This can help fund renovations, buy that big ticket item you’ve been saving for or used to help purchase an investment property.
- Consolidate debt
If you have credit card, car loan or personal debt, you can roll it into your mortgage when you re-finance. This will allow you to pay it off at a lower rate and helps manage your finances by just making one payment.
If now is the time for you to re-finance, call us. We’re happy to help!