As someone who has been involved in the Fredericton mortgage industry for many years I have helped hundreds of clients refinance their mortgage. Many of my clients have questions about refinancing, how does it work? Is this something that would actually benefit them? This is dependant on your specific situation. A mortgage broker like myself can help you determine whether or not now is the right time to refinance your mortgage. If you are considering refinancing here are three reasons that would benefit you.
Renegotiation of the Term.
A common reason people decide to refinance their mortgage is to change the term they have on their current mortgage. Switching to a longer term to decrease monthly payments or changing to a shorter term to save money in the long-run are the main reasons why people choose to do so. It all depends on your current situation, what your goals are and what you can afford.
Change the rate
Your mortgage will have either an adjustable rate or a fixed-rate associated with it. While each is different and has their own pros and cons, the type of rate you select must be what works best for you. This usually goes hand in hand with the term length on a mortgage and is mostly done at the same time when refinancing.
Another reason to refinance is to pay off some of your debts. This does come with the potential downfall of paying more in interest because you would now have more debt on your mortgage after transferring a credit card or line of credit balance to it.
Many reasons exist why someone may want to refinance their mortgage. I see it all the time and it can actually benefit you in the short and long term. Of course, it is always wise to consult a mortgage professional. If you’re considering doing this they can help you determine whether or not it is the best thing for you to do at the time.
As an experienced mortgage broker in Fredericton I have the right knowledge to help my clients find the right solution for them and that often includes a mortgage refinance. If this is something you think might be good for you, reach out to me today to talk! I always want the best for my clients and together we can find what works best for you.