Basics of Refinancing Your Mortgage
Many homeowners have considered refinancing their mortgage on their homes, considering the current record low interest rates on mortgages. Now is as good a time as ever to refinance your mortgage, and many Canadians who qualify are taking advantage of this option. Those who currently have a mortgage on their home may have different reasons for opting for a mortgage refinance Oakville or other cities in Ontario.
Why Refinance?
Using the equity built up in your home can be very advantageous for many homeowners. In essence, your home can be a great source of extra funds, borrowed at low interest rates. Using the equity in your home as capital can be used to make payments on other high interest loans, debt or other expenses that are charged at much higher interest rates. The following are some reasons why homeowners may choose to refinance their homes:
– Topping up RRSP’s
– Paying off student debt or paying for education
– Paying off high-interest credit card debt
– Funding a large home renovation
– Purchasing investment property
– Build up home equity faster
Whatever reason you may have for freeing up some capital from the equity in your home, a mortgage refinance Oakville, Ontario can be a great benefit to your financial plans.
Free Your Capital and Your Financial Woes
Personal finances can be a source of great stress for many Canadians. For many, it feels as though their finances are like a revolving door, where money goes out just as fast as it came in. For many, getting ahead just seems impossible. By taking advantage of a refinancing program, those who have built up a certain amount of equity in their home and qualify for such a program can get the financial relief they need to pay off any outstanding debt, or fund a large expense.
If you are considering a mortgage refinance, look to expert independent mortgage agents to help you in your quest for financial freedom. The professional team at www.YourMortgageOptions.ca have the expertise and connections necessary to get you the mortgage refinance package you need. Call awarding winning mortgage agent Claire Drage today at 905-330-9488 to help you use your home equity to help pay off your debt faster.
Refinance Your Mortgage to Pay Off Debts With Debt Consolidation
Many Canadians have multiple loans that they are paying each and every month. Many of these loans are charged at a high interest rate, which means a lot of the money you are paying on these loans is going towards interest rather than outstanding principle. Debt consolidation can help you save thousands of dollars in interest by using the equity in your home to combine all your loans into one monthly payment at a lower interest rate.
What is Debt Consolidation?
Consolidating your debt involves the process of replacing all your outstanding debts with one manageable loan. Canadians are able to borrow enough cash in one home equity loan in order to pay off all other outstanding debts. For example, you may have a car loan, credit card debt, and student loans that you are making payments on. Rather than having multiple loan payments, you can consolidate them all into one convenient and easy to manage loan. In this situation you would only be making one payment per month rather than multiple payments at varying interest rates. The payment amount is generally lower, which can also help with cash flow.
What Are the Benefits to Consolidating Your Debt?
You may consider this type of consolidation for a variety of reasons, including:
- Lower interest rates on the one loan, rather than higher interest rates on other outstanding loans;
- Lower payments due to extended terms on the debt consolidation;
- Reduction in payments with one easy to manage monthly payment;
- Free up cash flow by spending less on interest.
Considering the fact that interest rates on mortgage loans have been extremely low in the recent years, you could potentially save quite a bit of money every month by using the equity in your home, if you qualify – which is charged at a lower interest rate – to replace all your other loans that are most likely being charged a very high rate. Credit card and store card debt especially is charged at extremely high rates. By paying off this high interest card debt with your home equity or other consolidation loan, you can even free up some cash flow by utilizing one lower interest home equity loan to pay off all your other outstanding debt.
A home equity line of credit is another great option, where you have credit available to you up to a set limit. You can borrow and pay back as needed and only pay interest on the amount you have actually borrowed.
If you are one of the many Canadians who have a variety of outstanding loans at very high interest rates, you may be able to take advantage of debt consolidation. Call a knowledgeable mortgage agent like Lee Anne Taylor and see how she can help you save money by lowering your monthly payments. She can show you all the options available to use the equity in your home to reduce interest payments and improve cash flow.
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