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Mortgage News 2022

4 Main Reasons You Should Refinance Your Mortgage Today.

6/18/2021

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4 Main Reasons You Should Refinance Your Mortgage Today.

You may not know that unsecured debt differs from secured debt. 

Banks and credit unions consider unsecured debt riskier than secured debt, which is “secured” by its registration against title to your home or property. 

If you default on your unsecured debt like a credit card, for example, the financial institution cannot pursue your tangible assets like real estate to recoup the money they lent to you. As a result, unsecured debt comes with higher interest rates in order  to offset the greater amount of risk it exposes the lender to. 

Secured debt (mortgages and lines of credit) offer lower interest rates because it gets tied to your property. If you do not make your monthly mortgage payments, the lender can launch a power of sale, forcing the sale of your property in order to recuperate the money. Therefore, secured debt poses less risk to financial institutions because they have an available recourse if things go sour. 

Unfortunately, unsecured debt like your every-day credit card, car loan, student loan or personal loan cannot get secured against title to your home. As a result, you may get stuck making higher interest-only payments that reduce your cash-flow and financial productivity. 

Initially, an interest-only payment on a large credit card balance may not feel like a large financial strain but eventually, as the balance grows instead of diminishes, you will learn you are just wasting money. In fact, you will never get out of the debt if you just make the minimum payment and instead, may become a slave to your debt while living pay cheque to pay cheque. 

Refinancing can be the way out of this expensive (and pointless) debt cycle. Here’s why it makes sense.

Save Time

When you refinance your mortgage to consolidate unsecured debt, which has no timeline for repayment because it’s interest only and compounded daily, you set yourself on a path to get out of debt quicker. By merging these higher-interest loans (sometimes over 26%) into a mortgage loan that is less than 3%, for example, you pay more of your debt faster.

Simplify Your Life

By removing all the excess debt that simply eats into your cash flow, you reduce your debt and end high-interest payments. You centralize all of your debt into one loan with one financial institution. 

Improve Your Cash Flow

Everyone wants more money each month; everyone wants more monthly cash flow. When you refinance, you lower your monthly payment, experience a complete heavy debt reduction, and as a result, increase your cash flow. 

Leverage Equity In Your Home

If you’re fortunate enough to have equity in your home, you can take advantage of it and become debt free faster. 

Do you have questions about having extra money each month? Or how refinancing works? Save time and APPLY TODAY.

Call or write today.

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Mortgage Edge Broker 10680
Direct: (647) 773-4849
Email: sarah.colucci@mortgageedge.ca a

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Address

411 Queen St. 
Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

Telephone

Direct: 647-773-4849
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Email: scolucci@sherwoodmortgagegroup.com
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  • Home
  • WHY USE SARAH FOR YOUR NEXT MORTGAGE
  • APPLY ONLINE
  • PRODUCTS
    • Free House Value Tracker Report
    • CASH-BACK MORTGAGE
    • BRIDGE FUNDS
    • REVERSE MORTGAGES
    • SELF-EMPLOYED MORTGAGES
    • FIRST-TIME HOME BUYER PRE-APPROVALS >
      • FIRST-TIME HOME BUYER TAX CREDIT
    • MORTGAGE REFINANCE >
      • Prepayment penalties
    • SPOUSAL BUYOUTS
    • INVESTMENT PROPERTIES AND RENTALS
    • BRUISED CREDIT
    • PRE-APPROVALS
    • NEWCOMERS
    • DEBT CONSOLIDATION
    • HOME EQUITY LINE OF CREDIT
    • PURCHASE PLUS IMPROVEMENT PROGRAM
    • WHY INVEST IN REAL ESTATE
    • MORTGAGE RENEWALS >
      • New Mortgage Rules and Mortgage Renewals
    • SECOND MORTGAGE LOANS
    • LESS THAN 20% PROPERTIES
    • DOWN PAYMENT
  • CONTACT ME
  • PRIME RATE CANADA
  • CLOSING COSTS
  • DOCUMENTS REQUIRED FOR MORTGAGE FINANCING
  • MORTGAGE DICTIONARY
  • MORTGAGE NEWS
  • GOVERNMENT MORTGAGE RULES
  • MORTGAGE TIPS
  • HOUSE HUNTING CHECKLIST
  • APPRAISALS
  • FIXED OR VARIABLE RATE?