The benefits to refinancing your mortgage, include:
Getting a lower interest rate
One reason people choose to refinance their mortgages is to lower their interest rates. If mortgage rates have dropped since you received your loan, you can refinance your mortgage to obtain a lower interest rate. When you refinance your mortgage with a lower interest rate, the amount you pay monthly will decrease. Even a small change in mortgage rates can save you a lot of money on your payments.
Change your term or get a different mortgage
There are many reasons why you may need to change the terms of your mortgage. Your life may not be the same as it was 5 years ago and therefore your mortgage needs may need to change as well. For example, let’s say you want to put a lump sum of money towards your mortgage. You may consider changing to a mortgage that has more flexible repayment options such as an open mortgage. Or if mortgage rates have lowered, you may consider switching to a fixed mortgage to lock in those rates for a longer period of time.
Access your home equity
Every time you make a monthly mortgage payment, you’re building equity in your home. Home equity is the difference between your house’s market value and the outstanding balance of your mortgage. If you need extra cash, you can tap into your home equity by refinancing your mortgage. Whether you need funds for a home renovation or extra cash to consolidate your debts, refinancing your mortgage may be your solution.
Should you refinance your mortgage now?
There are many wonderful benefits to refinancing your mortgage. However, it’s important to weigh out the pros and cons to ensure it’s the right time for you to do so. To explore your options and to find out if now is the best time for you to refinance your mortgage, work with a professional mortgage broker. With my experience, I can help you decide if now is the best time for you to refinance and if it is the best financial option for you long term. Explore your options — Book a consultation with me today!