What does refinancing my Mississauga mortgage mean?
2019-06-08 Jun 8, 2019
When you are refinancing your mortgage you are simply taking out another mortgage to pay off your existing one – consult with a mortgage broker Mississauga expert prior to signing any paperwork. Usually at a better rate or higher value, there are many other considerations to be concerned about where terms are involved. To make sure that you get the best possible mortgage refinancing deal you have to make sure that you time it right and that you work only with the best in the business.
As your home will probably be the highest value asset that you own, you will need to be as well informed as possible to avoid making a mistake with your mortgage refinancing. Your mortgage refinancing in Mississauga should be handled by an expert with many years of experience in not only home equity and mortgage refinancing, but also in the Mississauga area.
Why should you think about refinancing your Mississauga mortgage?
You may have a great number of reasons why you are looking at refinancing your mortgage. Every situation is different so you will need to evaluate the pros and cons of getting your mortgage refinanced. Here are some of the reasons that are the most common:
You can get a better rate
If you can get a better rate on your Mississauga mortgage through refinancing then this could be a great option that will save you a great deal of money. You will need to do some number crunching to work out exactly how much you could save with the better rate, you may even be amazed when you work out this number and wonder why you did not refinance your Mississauga mortgage earlier.
You want to reduce your monthly payments
By extending the term of your mortgage you may be able to reduce your monthly payments. This can be a huge help with managing your finances and even allow you to pay back higher interest loans with the money that you will not need for your mortgage payments. You should take the time to fully understand the impact of this decision in the long term.
You want to increase your mortgage payments
If you can afford to increase the amount that you pay each month to your mortgage, you can potentially shorten the term of your Mississauga mortgage.
Move from a variable rate mortgage to a fixed rate mortgage
This can be great if you want certainty over the amount you pay for a set term. This has its drawbacks and you should speak to an expert to fully understand what your new deal will involve.
Getting some funds for home improvement
Refinancing your Mississauga mortgage will allow you to get access to funds that you can put back into your home. If you are smart about it, you will be able to increase the overall value of the home well above the amount that you spent. In many cases a home renovation loan can be obtained through a 2nd mortgage loan.
Pay off debt
If you have a substantial amount of debt that you want to pay off quickly you should of course do this as soon as you can. By refinancing your home you will be able to get rid of any high interest debt and then pay it off over the length of your mortgage at a much lower interest rate. Another option to speak with your Mississauga mortgage broker about is the blend and extend option, to see if it makes sense in your circumstance.
The best thing that you can do if you are considering refinancing your mortgage to take advantage of the equity within your Mississauga home is to be patient and learn all that you can about the process and what a 2nd mortgage refinance looks like. When the time is right and you know for sure that this will provide you with a long term improvement, then you should move ahead and enjoy the many benefits of refinancing your Mississauga home.