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There are many Canadians who find themselves with a lot of outstanding debt at high interest rates.  With low or minimum payments, the accruing interest makes it very difficult to pay off credit cards and other high interest debts. If you are one of those individuals who finds it hard to keep up with monthly bill payments, then mortgage refinancing can be the answer for you.  It can also help if you are looking to make a large purchase, do home renovations, pay for an education or other reasons.

What Is Mortgage Refinancing?

Mortgage refinancing refers to a process where your existing mortgage or mortgages are replaced with a new mortgage. This new mortgage will completely replace your previous mortgage(s), usually with a completely new set of terms and rate. If you are a resident of Milton, a mortgage refinance Milton will provide with a new amount of money to pay off your original mortgage(s) and any added debts that you are trying to consolidate.

What Are the Advantages to Refinancing?

Essentially, a mortgage refinance process can help you use the equity in your home to reduce your overall monthly payments and spend less on interest. Sometimes the current mortgage rate is much lower than the interest rate you locked into with your first mortgage. By refinancing, you can use your new mortgage at the lower rate to pay off the first mortgage, which will put more of your monthly payments toward your principal rather than your interest portion.

If you require extra funds to pay for large expenses, such as your child’s education tuition or home renovations, you can ‘cash out’ some of the equity in your home through a mortgage refinance process. You would refinance your mortgage for a higher principal amount in order to access the extra capital to pay for these expenses. You can also use these funds to pay off other high interest debts, such as credit cards, store cards or unsecured loans in order to relieve yourself of multiple monthly bills and payments. This usually results in better cash flow with lower monthly payments.  You can use the extra cash to pay down your mortgage faster, or to put some savings on the side so you don’t fall into the borrowing trap again.

If you find yourself in stressful financial situations, consider refinancing your mortgage to help reduce your bills and pay them off faster. Consult with a professional mortgage agent, such as Lee Anne Taylor, and put some money back in your pocket. Mortgage agents are the most qualified professionals to negotiate the best mortgage package for you and to review your options.  Even if you don’t want to borrow more money to consolidate debts, refinancing your mortgage can make sense if you can get a much lower interest rate, or if you want to try to pay your mortgage off faster.  A certified mortgage professional can show you all your options and find you the best deal – at no cost to you.