Tips for Homeowners looking to Refinance

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Mortgage Refinancing rates in Ontario

Original Post by Kristi Sauter Aug 16 2021.  See Original Post here

Right now, with mortgage rates as low as they are it might be the right time to consider refinancing. This is a way to utilize some of that hard-earned home equity you have.

First let’s breakdown what refinancing is. Refinancing your mortgage means renegotiating your existing mortgage loan agreement. You might do this to consolidate debts, or you could use the equity in your property to increase your mortgage loan amount for large expenses.

When should you consider refinancing?

If you are currently managing more than one line of credit, or maybe you have some credit card debt that you can’t seem to get under control, refinancing can be a possible solution. By amalgamating your debts into one payment, with a lower interest rate, your actual debt-owed in the long run is decreased over time.

Other examples of when you might consider refinancing is if you’re wanting to make a large purchase, like a recreation vehicle or you want to book that dream vacation.

As of recently, with the housing market the way that it is, refinancing can be a great option of you are considering any home renovations.

One of the best reasons to consider refinancing is to take advantage of the low rates or to change your current mortgage terms. If you locked in high or are interested in switching the type of mortgage you have, refinancing can do these things as well.

Things to keep in mind if you are considering refinancing

Not all refinancing offers massive savings, and the process does take time. So, if it’s something you are interested in doing you should contact a mortgage expert sooner rather than later.

By refinancing at the end of your current mortgage term, you may be able to avoid some prepayment charges.

If any of these scenarios sound intriguing to you, I encourage you to reach out and connect with a mortgage expert to start exploring your options.