Refinancing a mortgage is the equivalent of taking out a new loan on your home. The new loan typically offers lower interest rates, longer repayment terms, and/or a lower monthly payment. When a lender approves the refinance, the new loan replaces your original mortgage agreement.
Is now the right time to refinance my mortgage?
With interest rates at a historical low, it offers a wonderful opportunity to consolidate high interest debts (lines of credit, high interest credit cards, high interest vehicle loans, etc.) into one low payment. Thus, giving you one easy to manage monthly payment!
Refinancing a mortgage for some, may mean they are able to use the funds to help with post-secondary education, do major house renovations, plan a trip of a lifetime and so on. However, every borrower’s situation is unique.
If you are interested in further exploring refinancing, give me a call and we can discuss your options.