With interest rates at a 40 year low, you could save a lot of money by refinancing your
mortgage. It is best to speak to a mortgage broker who can do the calculations to find out if a mortgage refinance in Oakville, Milton, Burlington or other parts of Ontario – makes sense.
A general rule of thumb to follow is that it pays to refinance if you can get an interest rate at least 2 percentage points lower than the rate you are currently paying. If you use a mortgage broker, they can shop your mortgage refinance over banks, credit unions, trust companies and other financial institutions. There are usually penalties associated with paying your mortgage off prior to renewal, but the money you save through a refinance can usually offset these costs.
A mortgage expert can sit down with you to evaluate your situation and discuss your financial goals, your current debts and expenses, and your risk tolerence. If you have large credit card debts at high interest rates, it definitely could make sense to refinance your mortgage and use the lower interest rate mortgage loan to pay down your high interest rate credit card loans. This will result in better monthly cash flow for you and reduce the total amount of interest you pay per month.
If you consolidate debts, you are restructuring the amount you owe at a different, lower interest rate and usually a longer term loan. You can often keep your monthly payment amount the same if you increase the length of time you are paying the loan, despite the fact that you would have a larger mortgage.
You can also refinance your mortgage to pay for a large expense, such as home renovations, a college education, a trip or other big purchases.
For a free mortgage consultation, call Marcelle Tiqui, head mortgage agent of First Class Mortgages. She will even come to your home in the Greater Toronto – Greater Hamilton area to discuss your mortgage needs and find ways to help you reach your financial goals. You can reach her at (905) 208-7070.