Refinancing your mortgage is the process of paying out your existing mortgage(s) and establishing a new mortgage with new terms and conditions. There are several circumstances that may lead you to consider refinancing your home, these include…
Lower interest rates being offered in the marketplace: Breaking your existing higher interest mortgage and setting up a new mortgage at a lower rate and a new term may be beneficial. There are a few things to consider however. The penalty to break your existing mortgage and the legal cost to register the new mortgage are costs that must be weighed against the savings of the new mortgage.
Carrying higher interest debt: Credit Cards, Consumer Cards, Student and Automotive Loans typically carry double digit interest rates. Paying out these debts and incorporating them into a new mortgage payment can dramatically reduce not only your interest savings but also helps to increase your monthly cashflow. The extra money saved on a monthly basis can be used to pay down the mortgage, increase your investments, or take a well needed vacation.