Should You Think About Refinancing Your Current Mortgage?
You’re not having any problems with the current mortgage, but there’s a good chance it’s not providing all the benefits that the arrangement could offer. One way to determine if a change is in order is to consider what benefits could result from choosing to re-borrow the mortgage loan via refinancing. Depending on the particulars of your situation, one or more of the following may apply.
Your Credit is Much Better These Days
Thanks to your diligence and good money sense, your credit score is higher than it was when you first secured the mortgage. Why does that matter? If could mean that refinancing would allow you to lock in better rates and terms. If that’s so, you end up saving money by choosing to refinance.
Credit scores often impact interest rates, at least with lenders like banks and mortgage companies. The scores you enjoy now make it possible to refinance the balance of the current mortgage, pay less in interest, and maybe even retire the debt sooner rather than later. That’s certainly something to consider.
So is Your Annual Earnings
Another factor that influences the interest rates and terms you received with the original mortgage is the amount of income you generate. Life has been good, and you make significantly more money these days. Coupled with the fact that you don’t have much in the way of unsecured debt, quite a few lenders will be willing to refinance the current mortgage.
The result could be that you lock in much better rates and terms, allowing you to enjoy lower monthly payments or possibly pay off the mortgage sooner than originally expected. Either way, you end up with a monthly budget that’s easier to manage.
Consolidating Debt Would Strengthen Your Financial Situation
Have you thought about how nice it would be to not have as many obligations to honor every month? While you’re doing okay, it seems like there’s something to pay every week. Would you like to get rid of those smaller debts and only have one to manage each month? If so, refinancing the mortgage is a good idea.
Consider how much it would take to settle those various and sundry debts. Compare that to the equity you have built up over the years. No check out a website for those looking for a mortgage in Toronto and see what sort of deal you can get. By this time next month, you could have every other debt paid in full, leaving you with just the mortgage installment payment to make. Best of all, the amount of that payment may not be any more than it is now.
Refinancing Would Make Funding Those Home Improvement Projects Easier
Would you like to update a few things around the house? Maybe remodeling the kitchen or the master bathroom would be great. You may even like the idea of finishing the basement or adding a full patio to the back of the house. Instead of taking out a new loan to cover the cost, consider refinancing the mortgage. That will allow you to get the money needed without adding one more debt to manage each month.
There are plenty of other reasons to refinance an existing mortgage. Look at your circumstances and decide if this is a strategy you can put to good use. If so, start talking with a professional today. You’ll be glad that you did.