Whether your family is growing, your wallet being in more of a pinch, or your needs changing, your mortgage arrangement might not keep up. That’s why refinancing is so useful, especially when you use services like Clic Money to easily compare the options on the market.
Read on to discover why refinancing is such a smart move.
1. Improved lender benefits
Over time, you may have discovered that your lender charges an exorbitant annual fee or has crappy customer service, and you’d rather deal with a company that has your best interests at heart. Having a knowledgeable mortgage broker on your side means you’ll have all the benefits explained to you, person to person, so you can make an informed decision about your mortgage.
2. Adjust your loan term
Refinancing is an opportunity to either reduce or extend the life of your loan. Depending on your financial goals, you may prefer a shorter or longer loan term. Remember that lower monthly payments don’t always represent the best long-term value, so it’s best to consult a mortgage broker about your preferences.
3. Change loan types
All home loans are not created equal. Choosing a fixed-term mortgage over a variable one can have a big impact on your overall costs. When comparing home loans, be sure to compare similar products. In my experience, a quick phone call with one of my customers can mean a lifetime of savings.
4. Access home equity
After a few years you might be ready to upgrade your kitchen or renovate the bathroom, and home equity can make these projects possible. Accessing home equity is often a great opportunity to make sure your loan is still working for you. A mortgage broker can be a great resource to help you re-evaluate how your mortgage suits your current situation.
5. Lower interest rates
We can’t ignore the most convincing reason to refinance, and that’s to secure a lower interest rate. If you haven’t refinanced in a few years, chances are good that a lower interest rate could be available to you. A few minutes on the phone with a mortgage specialist could lead to significant dollar savings, now and in the years to come.
The longer you delay, the higher your risk of missing out on a great chance to save money – interest rates won’t stay this low forever. Discuss your refinancing options with your mortgage broker today to find out how you can make the smart choice on your home loan, or alternatively, you can give me a call.