Are you looking to get away from a high interest mortgage? Maybe you would like to pay your mortgage down faster? How about consolidating some credit card debt and improving your cash flow? Some home improvements? Refinancing with the equity in your home could provide a very effective solution for you.
Rates have creeped up a bit over the last couple of months, but they are still pretty low. This means that you could benefit from a lot of savings if you are considering refinancing. Depending on your needs and goals, refinancing could make a lot of financial sense and impact.
Here are some great reasons to consider refinancing in 2017
High Interest Rate On Current Mortgage
Have a look at your rate vs. what is available in the market today. Are you paying too much? It’s a great idea to visit your mortgage annually, even if you are in a locked term. There may be better options for you to consider.
The good news is that you’re not necessarily stuck in your mortgage to term. Yes, there may be penalties. But sometimes, it’s wiser to take some pain for the ultimate gain.
Consolidate Debt
Let’s face it, credit cards and lines of credit are not meant to carry balances. Furthermore, in most cases, the interest rate is ridiculously high. Remember that coffee table you purchased at such a great price? How much will it cost you by the time you finish paying it off? If you have credit card and other debt in the thousands of dollars following the holidays, those interest charges can add up quite quickly.
This is where you can use your home equity to your advantage. If you want to consolidate your credit card debt, it makes a lot of sense to cash out some of the equity in your home. Interest rates on mortgages are typically much lower than the interest you would pay on your credit cards if you had to carry a big balance over time.
This is a great way to get yourself in better financial shape if you’re looking to cut down your debt charges.
Fund Your Investments, Requirements
Yes, our home is our major asset and paying it off should be a primary goal. However, there are other things in life that come up. You can use the equity to your advantage for any number of things.
If your retirement fund needs a boost, a cash-out refinance can be a great way to make that happen. How about that investment property or second home you have been thinking about? Sending your child to college or university? Perhaps it’s time for a major renovation or addition? It might just be that your home is tired and needs a major upgrade such as windows, doors, a new roof? Your equity can give you the funds you suddenly need or that you have been planning for.
Yes, interest rates have increased slightly, but still pretty low. This makes refinancing still a very viable option for many and it could be that way for you.
Have any questions, need any advice? Visit us at www.thefinancialforum.ca. Email us at mortgages@thefinancialforum.ca. Call us at (905) 265-0246.
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