Are you’re looking to purchase real estate, tackle that perfect kitchen renovation, or help with your child’s tuition? If so, refinancing your mortgage could be the solution for you. Whatever the reason may be for refinancing, it’s important to consider renegotiating your loan agreement in a way that best suits your needs now, and in the future. Here are a few common reasons for refinancing your mortgage.
1. To buy an investment property
A refinance could help you to access the money you need for a down payment to purchase an investment property, further building your real estate portfolio. A refinance will allow you to access up to 80% of the value of your home (with most lenders) in total as a mortgage balance.
2. To lower your interest rate and monthly payment
As the economy changes so do the mortgage rates, so at times when the mortgage rates are low, refinancing may not only lower your monthly payments but also reduce the amount of interest you pay each month. You can then use your newly found additional funds to put towards the principle of your loan, emergency savings or the trip of your dreams.
3. To finance renovations and home upgrades
With a mortgage refinance you have the opportunity to access equity that can be used to make upgrades, repairs or major renovations to your home – which ultimately will also increase the value of your property when the time comes to sell.
4. To consolidate debts and loans
Unsecured credit such as credit cards or lines of credit generally carry a higher interest rate than other secured loans. The strategy of refinancing will allow you to use the equity in your home to secure a lower interest rate for your total debt load and reduce your monthly payment obligations and overall interest payments.
Refinancing may seem overwhelming, but with the right support it’s a relatively easy process that can provide you with a long-term financial benefit. If you’re considering a refinance, I’d be more than happy to discuss your options and help you decide if this is the right next move for you.
Chad Eliason 📞 250.804.9874 📧 info@chadeliason.ca⠀ 🌐 http://www.chadeliason.ca