Your home is most likely the biggest investment you will ever make in your life. Owning a home is a great way to invest your money, and have it grow over the years. The more you put into your home, the bigger your home equity will get, which can come in handy for large future expenses. In order to use the equity built up in your home, you may want to consider a mortgage refinance Alberta program with the help of a seasoned mortgage broker like Jim Black, AMP.
What is Mortgage Refinancing?
Mortgage refinancing involves paying off your existing mortgage and setting up a completely new mortgage on your property. This is a little different than getting a second mortgage – your first mortgage(s) are completely paid off with the new mortgage.
Now is a great time to refinance your mortgage, as interest rates are extremely low. If you had previously locked in at a high loan rate, it may make sense for you to refinance your mortgage in order to lock in at a much lower rate, and therefore save thousands of dollars over the term or amortization of your mortgage. Of course, it is important to consider any possible penalty charges associated with breaking your mortgage before the term is up. However, for many people, refinancing makes sense.
Reasons For Refinancing
There are a variety of reasons why some home owners may choose to refinance a mortgage. Some of these reasons may include the following:
- A significant decrease in interest rates since you assumed your mortgage
- Different terms for paying your mortgage off faster
- Qualification for a better mortgage rate due to an improvement in your credit score
- Use of home equity to pay bills, and other large expenses such as home renovations and educational tuition fees
- Use of equity to pay down credit cards or high interest loans
- Change from a variable rate to a fixed rate
- Change in your financial situation
Choose a Reputable Mortgage Broker to Help with All Your Refinancing Needs
When refinancing your mortgage, look to a professional mortgage broker, such as Jim Black, AMP. He has all the expertise and knowledge to help you understand your options and the best ways to use equity and save money. Call Jim and his team to go through the calculations with you to see how much you can save with a mortgage refinance.