Your house is most likely the biggest investment of your life, and that investment was made possible by a low mortgage rate.
Taking out a low mortgage rate is a huge life commitment as you’ll have to repay it in the next 15 to 30 years, so you must find ways to relieve yourself from this burden.
One of the best ways to reduce the stress of your mortgage is by refinancing. Refinancing your mortgage means paying off an existing loan and replacing it with a new low mortgage rate.
It might sound weird to replace the old mortgage with a new one, but it’s one of the best solutions in order to pay even less on your mortgage rate.
There are multiple advantages to refinancing your mortgage, and in this article, we will go over the main ones.
Why Should You Refinance Your Mortgage
Interest rates on mortgages are significantly lower than what we had during the pandemic. Nevertheless, refinancing your mortgage can have great benefits, including the following:
Less to pay monthly: If you’re going through tough times, you can refinance your mortgage to spread the current balance over a new term.
Once you pay your existing mortgage with a loan, you’ll have a new one with lower interest rates, and you can lower your monthly payments significantly, leaving you with more money each month.
Less interest: Interest rates are ever-changing, and the rates of 10-15 years ago (when you took out the mortgage) aren’t the same now.
You’ll pay a much lower loan if you refinance your current mortgage and get a new one at the current interest.
Tap into your equity: Getting access to your home equity can be a lifesaver, as you can borrow large sums of money for emergencies by using your house as collateral. One of the ways to access equity is by refinancing your low mortgage rate.
Consolidate debt: Many homeowners use refinancing to access their equity in order to repay their debt.
Replacing high-interest debt with a low-interest mortgage is a smart choice.
Why choose Northwood Mortgage?
If you want to take the next step and refinance your mortgage, your best bet is to work with a team of mortgage experts such as Northwood Mortgage.
We’ve helped hundreds of clients get their refinancing the right way, and we always ensure complete customer satisfaction.
Northwood Mortgage is one of the GTA’s largest brokerage firms, and with our professional and experienced specialists, we’ll make sure that you get the most out of your mortgage refinancing.
Our team of more than 135 mortgage experts will help you with all of your questions and problems about a low mortgage rate.
Mortgage refinancing can be a great tool in your arsenal, whether you need money for urgencies or want to pay less for your mortgage monthly.