Do you have children or grand children in university and you would like to help fund their tuition? Are there some home renovations you would like to complete in the near future? Is your  interest rate much higher than the current rates being offered by the banks?

If you have answered yes to any of these, refinancing your mortgage might be the answer you are looking for. The above questions high-lite only a few of the reasons why someone would want/need to refinance their mortgage. Let’s take a look at a few examples.

Debt Consolidation

One of the major reasons people refinance is to consolidate their unsecured debt at a lower average interest rate and combined in one easy payment. Plus if you are paying 18%+ on your credit cards doesn’t it make sense to move that debt to a loan that will most likely be below 8%? Depending on the size of the debt this could result in saving $100’s of dollars a month in loan payments and these savings can be used to pay down your debt faster and be debt free quicker.

Lower Interest Rates

In economies where interest rates are falling it can make sense to refinance your mortgage to take advantage of the lower rates. I can help you calculate if the potential savings would be worth your while.

Home Renovations

Why finance your home renovations through credit cards when you have access to the equity in your home. In many cases a full refinance is not required. I can get you a line of credit secured against your house so you have access to the money when and where you need it. The best part is you don’t pay interest on the money you don’t use.

Things You Should Know

When refinancing your mortgage there are a few things you need to keep in mind. First and foremost is the penalty you will incur from your current lender to break their mortgage. In many cases the penalty is large enough to hegate any benefit you would realize from the refinance. That being said in some cases the monthly savings is more than enough to pay back the penalty within a year. I will work with you to calculate the “payback” period and determine if a refinance is in your best interest. You should also keep in mind a home appraisal will be required by the lender to determine the true value of your home. This will usually cost between $250-$300. Finally a lawyer is required to register the new mortgage against the property. You can expect to pay between $500-$750 for this.

As you can see there are some expenses involved with refinancing your mortgage, but if done properly it can result in significant cash savings for you and your family. Please feel free to Contact me to discuss the option that is right for you!