Would you like a loan with better features? Are you looking for cash to fund your renovations? Refinancing your mortgage is a great way to save, and update your loan to match your current situation. If you’re not sure whether refinancing is for you, here are some benefits of refinancing.
Benefit 1: Mortgage refinancing may lower your monthly mortgage payment
Refinancing may enable you to take advantage of the lower interest rates on offer. Refinancing can enable you to lock in at a lower fixed rate. You may even secure a lower variable rate that could drop even further in the future. With the low interest rates currently trending, now is the time to refinance. Take advantage of this opportunity and ask us how we can help you save!
Benefit 2: The total interest paid on your mortgage could be reduced
Depending on the loan terms, costs of refinancing and interest rate that you receive when you refinance, it is possible for you to pay less in total interest. Make sure to be thorough with your calculations of the costs associated with refinancing and determine your total payments to establish an accurate picture.
Benefit 3: You can pay your mortgage off faster
Your circumstances are always changing. Perhaps you are earning significantly more income than you did when you bought your home. Paying more back each month isn’t always allowed, so refinancing could be the best option for you. A CSM broker can help you choose a lower term to pay off your mortgage sooner.
Benefit 4: Your better credit could qualify you for lower interest rates
Some of you may have purchased your home when your credit was struggling; meaning you probably had to agree to pay a high interest rate. But now that you’ve rebuilt your credit, take advantage of lower interest rates through refinancing. A better credit score will mean lower interest and better mortgage terms.
Benefit 5: Refinancing lets you unlock the equity in your home
A key benefit of refinancing your mortgage is that it allows you to access the equity in your home. You can get a line of credit based on the value of your home and the amount that you’ve already paid on your mortgage. This is a great way to fund renovations which could increase the value of your property. The interest rate is equal to your mortgage rate, so borrowing from the equity in your home tends to be the most cost-effective financing option available to homeowners.
If you’re considering refinancing your home loan, head over to our Refinancing FAQs where you can read about how refinancing works and the considerations involved. Should refinancing be right for your situation, or you have more questions to ask, get in touch with a refinancing expert at CSM.