REFINANCING YOUR MORTGAGE
Refinancing has never been so easy.
Refinancing your mortgage means you are paying off your existing mortgage and replacing it with a new one. You may replace your existing mortgage for a multitude of reasons - from financial hardship, to home renovations, to withdrawal of equity for investments and much more.
Some of the most popular reasons a client may want to refinance is as follows:
Financial hardship — Refinancing may allow you to consolidate all of your debt and restructure your monthly cash flow. Consolidating your debt into one monthly payment will make budgeting easier, will increase your cash flow, an will allow you to save money on interest while also building your credit score.
Home renovations — With your home having more equity available than ever, now is a great time to lean on that equity and complete some home renovations. Withdrawing your equity and turning it into capital is a great idea for those who want to increase the value of their home with some renovations.
Investment Opportunities — Whether you’re looking to purchase a rental property, invest in a portfolio, or more — refinancing will allow you to turn equity into cash, so you can invest that cash as you please and watch it grow!
Interest Rate Concerns — Do you want to switch from a fixed to a variable rate? (or vice versa) Refinancing allows you to change the structure in which your interest rate is calculated, and will even allow you to capitalize on lower rates should you qualify for them.
Divorce/Major Life Change — Are you needing to refinance to buy out your spouse and keep your home? Are you kids going off to college and you want to put a cushion in their bank accounts? Refinancing is a great option for clients who have experienced a major life change and need to lean on the equity in their home.
IS THIS BEST FOR YOU?
REFINANCING CAN COME AT A COST...
While refinancing may be a great solution for you, there are some things that you should know.
When you payoff your existing mortgage and replace it with a new one, you are breaking your original contact — and that can cost you. Like in any contract, there are penalties involved when breaking it. These penalties can sometimes be quite costly, so typically it’s best practice to hold off until your mortgage is up for renewal.
Life throws curveballs constantly, and as we know, rarely ever do those curveballs align with the timeline of our life. More often than not, the benefit of the refinance trumps the costs involved.
If you have a need for refinance - let’s calculate your penalty and see if it makes sense for you. Nikki will go above and beyond; and pair you with a flexible, more penalty friendly Lender for next time.
Are you interested in refinancing today?
