Utilize Your Homes Equity To Reach Your Goals Quicker!

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Refinancing takes care of the current mortgage and any other legal rights against the property, creating an entirely new mortgage.
Utilize Your Homes To Reach Your Goals Quicker!

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When Refinancing Makes Sense

Refinancing takes care of the current mortgage and any other legal rights against the property, creating an entirely new mortgage.

Refinancing could save you a lot of money if interest rates decrease by 1 or more percentage points below the rate you currently pay.

Refinancing mortgages can be used to lower your interest rate, modify the duration and amount of your loan, or consolidate other debts to increase the cash flow you receive each month.

Recently, many homeowners have benefited from lower interest rates and are waiting in line to refinance their mortgages. Whatever the goal, taking advantage of the equity in your home could be the most economical option.

Here are some excellent reasons to think about the possibility of refinancing your house.

Repay High-Interest Debts By Refinancing Your Home

Mortgage refinancing is also a way to assist in repaying high-interest debts, such as cards and credit. Nowadays, it’s possible to refinance mortgages to up to 80% of the home’s value and use the money to pay off credit card debts or loans and existing mortgages.

The benefit is that you can lower the monthly payments and pay as little interest for your loans as possible. Why should you pay 20% interest on your credit card instead of paying approximately 4% for your mortgage?

Financing A Home Improvement

If you’re undertaking major repairs (spending more than $15,000), It could be easier to pay for it monthly through an investment in a mortgage instead of the cost of a credit line. (Click below to use our calculators to calculate affordability for various mortgage scenarios, including refinancing.)

Education In Finance

With the more expensive tuition fees of most schools and programs, most need to put aside more money to assist with the financial burden of attending school. Home equity could be the most affordable option to bridge the gap.

Financing To Purchase Investments

You could put the equity you have in your home to help finance the purchase of investments or make a swap to allow the non-tax-deductible debt to be tax-deductible. This could reduce the tax-free interest cost by nearly half for those with high incomes! If you do it correctly, you will benefit from lower carrying costs and making all (or some) of the interest you pay tax-deductible.

Purchase An Investment Property By Financing The Purchase Of Investment Property

Suppose you have equity in your home and want to expand your investment in real estate, either in Canada or another country. In that case, it is possible to make equity out of the property you currently own by refinancing the mortgage and using the extra as the down payment towards buying an investment home. This can also provide the deduction of interest on top of that.

Refinance Two Mortgages Using One Mortgage

Suppose you have two mortgages on the same house, such as a mortgage or secured credit line. In that case, you could combine them into an initial mortgage, providing an amount that doesn’t exceed 85 percent of the property’s value.

What Is The Price Of Refinancing?

If you breach an agreement to close a mortgage to get a new mortgage, typically, you will be faced with a cost for prepayment from your financial institution. Typically, this charge is calculated on the larger amount of three months’ interest or the rate of interest differential (IRD). This fee is deducted with the proceeds of the new mortgage therefore, you do not have to pay the cash in advance. It’ll assist you in calculating this and show you ways to cut down on this cost.

Refinancing your home could be a good idea for you. However, it can be challenging for those who need to be made aware and trust the process to mortgage professionals. There are appraisal and legal costs.

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