Refinancing your mortgage can be a great way to save yourself money in the long run. So, what is refinancing, exactly?
Refinancing involves paying off an existing loan and replacing it with a new one. There are many possible advantages to refinancing, including:
- Obtaining a lower interest rate on your existing mortgage
- Renegotiating your mortgage terms in order to get your mortgage paid off faster
- Consolidating your debt by replacing other high-interest loans with a low-interest mortgage
- Accessing the equity in your home to finance a large purchase
It is important to note that sometimes the disadvantages of refinancing can outweigh the advantages in particular situations; there may be penalties involved that end up costing you more money than you save in the long run. That’s why it is important to speak with a professional who can sit down and assess your specific situation and explain in detail why refinancing is or isn’t a great option for you.
If you’re currently locked into a mortgage with a high interest rate and are wondering how the low interest rates in today’s market could potentially save you money, feel free to contact our office today! One of our certified Mortgage Brokers will be more than happy to provide you with a complimentary mortgage consultation to help you better understand the refinancing process and how it pertains to your particular situation.