To refinance means to pay off your current mortgage with a new one. Interested? Send us a message at email@example.com – we’ll help you find a refinancing plan that fits your unique financial needs. We want you to spend less time paying for your home and more time enjoying it.
What it means to refinance
Refinancing can be a great way to lower your interest rate, consolidate and pay off debts, or even tap some of the equity in your home. It’s become a popular tactic in today’s declining interest rate environment; borrowers simply pay off their old loan with a new loan that has a lower interest rate or other more favourable terms.
The only major impediment to refinancing is the large penalty you may have to pay your lender if you break your mortgage term early. You’ll have to decide if moving to a new mortgage with better terms is worth incurring a penalty.
But if you’ve built up extra equity in your home, you can apply for a mortgage that’s bigger than the one you want to discharge. You can use the difference to pay off credit cards, send a child to college, do home renovations – whatever you wish. Borrowers who go this route often see their monthly payments drop because lower interest rates offset the cost of their bigger mortgage.