Refinancing is the process of changing the interest rate, terms & conditions, and/or taking advantage of the increased equity (value) of your home by advancing additional funds.
Generally, mortgages are refinanced to reduce payments and/or give you access to additional financing. As you pay down your mortgage and the value of your home increases, so does equity. Equity refers to the value of your home vs. how much you owe on your current mortgage(s). Examples of why homeowners refinance include debt consolidation (having one simplified payment vs. several credit cards, loans, and/or lines of credit), to pay for renovations that could increase the value of your home even more, to cover large expenses such as additional education, to create an emergency fund, to purchase additional properties, or for investment purposes.
Our most recent refinance application was for a couple who had over seven different credit cards, lines of credit, and loans. By consolidating these debts into their mortgage payments, they were able to save over $2,000 per month in interest payments, and simplified their debt payments obligation into one manageable and easy-to-track payment.
Book a consultation with us to learn how you can gain access to additional funding and potentially reduce your mortgage payments.
