In this blog post, we will discuss 3 great reasons to refinance your mortgage.
You may be able to qualify for a lower interest rate than what you are currently paying on your home loan.
Refinancing is a great option if you want to save money on your mortgage payments and free up cash flow each month. Usually, it makes sense to refinance if you are trading a higher interest rate for a lower interest rate.
Mortgage refinancing is often an option for people with mortgages that have variable or adjustable rates because they have more flexibility in setting the terms of their refinanced loan.
Unlike many fixed rate mortgages, breaking a variable rate mortgage is only three months' worth of interest. The low penalty gives borrowers flexibility to refinance to accomplish debt consolidation or extract funds from their home's equity for renovations.
It may allow homeowners the opportunity for more favourable refinancing terms such as longer repayment terms, lower monthly payments, etc.
Borrowers may extend their amortization period to reduce their monthly mortgage payments through refinancing. An amortization period cannot get extended once in a closed mortgage, so refinancing can help accomplish this to free up cash flow.
Do you have mortgage questions? Feel free to call or write.
Sarah A. Colucci, Mortgage Agent
Mortgage Edge, Broker 10680
Direct: (647) 773-4849
By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929