Finance and budget can be a challenge. There are certain expenses that we automatically assume as set in stone, when a lot of the time we could all benefit from renegotiating some of our bills to save some serious dough. In budgeting we tend to see things like our mortgage as a fixed expense, whether our mortgage is a variable or fixed rate, and plan accordingly. The good news is that you can refinance your mortgage and not just as your term ends. Refinancing is when the borrower is able to increase the size of the mortgage loan or renegotiate it in some fashion, securing a better interest rate and term.
One of the biggest barriers to refinancing is the danger of ignorance which comes at the price of not obtaining the right loan for you and your needs, and the possibility of financial penalties associated with the process. This is why it helps to hire an expert who can advocate for you and your best interests. Here are 5 times when you’ll want to consider refinancing your mortgage.
- To Consolidate Debts
Credit card interest rates are quite high and can be a huge obstacle for many trying to reach their financial goals. By refinancing your mortgage you might be able to reduce hundreds or thousands of dollars in interest.
- To Tackle Renovations or other Major Purchases
Maybe your roof needs repairing, your furnace needs replacing, or your car has seen better days. Refinancing your mortgage can free up some cash to avoid going into higher interest debt for a larger purchase.
- To Help With Education Costs
Post-secondary education is expensive. Many parents want to help their children make it through school without costly student loans. This is why many parents seriously consider refinancing their mortgage to help invest in their child’s future.
- For That Vacation or Investment Property
It’s wise to put as much money possible down on a property you’re buying. Whether you’re looking at an investment property, a summer home, or a retirement get away, refinancing your existing mortgage is a fantastic way to top up your down payment.
- Rates Have Changed Since You Took On Your Mortgage
If you’ve been locked into your mortgage for a while and interest rates have dipped, even as little as a percent or two, it is well worth exploring your options with a mortgage broker. You could take advantage of these rates to pay off your mortgage sooner, or free up a little extra cash for that family vacation.
To connect with a mortgage broker today about refinancing your mortgage click here.