Real Estate Agent in East York - Better Homes And Gardens Real Estate

3 Great Reasons to Refinance Your Mortgage this Spring

16 March 2018
Kevin Hartley

After having had a mortgage for a few years, many savvy East York property owners start to think about refinancing. To put it plainly, this means ending your current mortgage and taking out a new one that can benefit you in some way. I'm going to share a few well-reasoned thoughts as to why you might want to consider refinancing your mortgage this year. Okay, first things first.

Would the Extra Cash Be Useful?

How would you use extra money if you had it on hand? Extra dough can always come in handy, and many homeowners consider refinancing to take advantage of the value that has already begun to build in their home. It could be useful for a vacation, an investment property, a Florida vacation, retirement or investment property, some new furnishings, or even for a massive renovation, which of course means adding value back into your home.

There's no escaping the monthly payment, so bear in mind that refinancing just means swapping your old mortgage out for a new one. Keep a close eye on your credit rating and budget if this is something you're considering.

Could Your Interest Rate Stand to Improve?

Ultimately, no one refinances unless it benefits them. In the resent past, it has meant a lower monthly payment due to a better interest rate. As mortgage interest rates always fluctuate, but have risen lately, it is very likely that a lower rate may not be available now. What you will have to consider is the cost benefit analysis of the any equity you might take out. For example, if you have credit card debt at 24%, then paying it off with equity funds costing 3.83% (for example) makes sense. Or, if you need renovations for comfort and improvements to your home, then borrowing to complete those may add worthwhile value to your home overall. Another factor is an improved credit score. If your credit is better now than when you initially borrowed, you'll have more favourable options to consider.

Are You Trying to Lower Your Payment Each Month?

Sometimes, refinancing means making the duration of your mortgage longer. If you are looking to reduce your monthly payment but continue paying for a more extended period, refinancing could be an excellent solution for you. For instance, if you still owe $60,000 and you have five years left on your current mortgage, that ends up being an outlay of about $1,000 every month going toward your mortgage. Depending on the circumstances though, it may be possible to make your mortgage term longer, which would help to reduce your monthly payment while you continue to pay it off.

Those three reasons are just a few of the many compelling arguments for refinancing your mortgage this year. To discover more about how refinancing can benefit you, or to get started with the process, reach out to me today. I know a good number of friendly, professional mortgage advisors who are ready to share their expertise to assist you in getting the most out of the refinancing process.

Thanks for reading. Questions or ideas for a future blog? Feel free to contact me here.

TorontoMLS, realtor_toronto, real_estate_agent_toronto, Top_real_estate_agents_in_Toronto, best_real_estate_agent_toronto, top_10_real_estate_agents_toronto, ipro-Realty, Houses_for_sale_east_york, east_york_homes _for sale, east_york_real_estate, houses_for_sale_in_east_york_Toronto, TorontoMLS, Toronto_real_estate, Toronto_housing_market, Toronto_real_estate_market, realtor_toronto

Kevin Hartley, Broker is a Toronto based real estate Broker with Better Homes & Gardens Real Estate | Signature Service, Brokerage. @Home is his lifestyle blog, an expression of his passion for home keeping though MAKING (Recipes), DOING (DIY), BEING (Health/Wellness) and DWELLING (Home Ownership, Sales & Maintenance).  Content not intended to solicit clients under contract.

Partner with @home for client, blog, social media, advertising, sponsorship or contest opportunities. Learn more here!