What exactly is refinancing your home? Refinancing your mortgage replaces your old mortgage with a new mortgage; one with a different principal amount and interest rate. Refinancing can also allow you to change the terms of your mortgage to secure a lower monthly payment. Many homeowners choose to refinance their property for a variety of reasons - regardless of your personal reason, it is important to understand how you can use refinancing as a valuable financial tool.
Here are some of the most common reasons for refinancing your mortgage:
Get Rid of Debt
With high interest rates and the rising cost of living, tackling your debt can be a challenge. Free up your cash flow and get your debt and the amount of interest you pay on it, under control by consolidating your payments into a single mortgage loan. Once your debts are paid, this will leave you with one monthly payment at a lower interest rate than your credit card or unsecured loan you may have been paying.
Increase the Value of Your Home
When you access the equity from your home, you can use the funds to make necessary or desired upgrades, repairs or even major renovations to your home. These changes can make a big impact on increasing the value of your property when the time comes to sell.
Getting the Best Rates on the Market
The mortgage industry and its rates are constantly shifting and changing. Refinancing your mortgage may help to lower your monthly payments, while reducing the amount of interest that you pay over the term. You can take those savings and use them to pay down the principle of your loan or put it into savings for down the road.
Invest in Real Estate
Refinancing can give you access to funds that you may need for a down payment and closing costs to purchase an investment property. Refinancing can be a powerful tool for building your wealth now, and generationally.
When you are considering refinancing your home, it is recommended to get the advice and help of a trusted mortgage professional. This is where I come in! I can help assess your individual financial situation and help you get the best mortgage product for your goals by helping negotiate your loan agreement and locking in the best terms for you. Let’s connect today,