Let's break it down, shall we?
Refinancing
There are many innovative ways to manage your existing debts as a homeowner, and this is where a mortgage broker can help. Refinancing is the reorganization of your debts. Many Canadians are finding that they need to adapt their financial strategies in the economically challenging climate that they find themselves currently living in. You may have accumulated debt over the years after purchasing your first home. The credit card debt is racking up, your extended loans are collecting interest and you might have additional expenses that were unexpected. On top of that, you may have a number of unsecured consumer debts with 20% interest rates and no matter how you slice it, you’re just getting by as the balance slowly increases.
Whether you’re looking to consolidate your debt, to renovate your home or to purchase another property, managing your existing debt is the way to move forward. The good news is that Kevin can help you develop a strategy. As you make payments on your mortgage and your home appreciates in value over time, so too does your home equity. Refinancing isn’t only a strategy for approaching your debt, it can also save you money in the long run when you take advantage of your accumulated home equity to mitigate the potentially high interest rates of your current unsecured loans. When you consolidate your debt into one source, it reduces stress, helps to keep you on the right track and gives you more positive cash flow.
Kevin can review your current mortgage to determine if refinancing makes sense for you. There’s no charge for a mortgage review, so it’s worthwhile to weigh out your options as there may be some penalties involved if you break the current term of your mortgage. If you discover that the cost to break your mortgage is too steep, then you can always wait until you’re closer to the renewal date. There are lenders with secondary products available for the interim as your mortgage matures. So, it may then make sense for you to add a secondary mortgage loan with a floating rate and minimal penalties in the meantime.
Ultimately, Kevin works for you and he’s here to assist in creating the appropriate solution to your financial struggles. There are times when it makes sense to refinance right away because life happens, and debt can get out of control. Refinancing your mortgage and freeing up your cash flow to pay off unsecured, high-interest debt on your credit cards, lines of credit or loans could be a game-changer for your financial future.