If you are like most busy parents, refinancing your mortgage is the last thing that you think about on a daily basis. Instead, you may be caught up in the details of day-to-day life, such as if your son will pass his math test or how much your daughter’s braces will cost. Of course, your family’s finances play a major role in many of the decisions that you make on a regular basis as well as on how you plan and prepare for the future. With how busy you are, however, if things aren’t broken, you may not consider taking the time to make an improvement. While this is understandable, the fact is that there are three key reasons why you should think about refinancing your mortgage today.
Taking Advantage of Low Interest Rates
Unless you only recently obtained your current mortgage, chances are that your interest rate is considerably higher than the rates currently available. Why does a low interest rate matter? Your interest rate will affect how much money you throw away in interest charges each month. A lower interest rate means that a greater percentage of your payments are applied toward principal, and this can help you to build more equity in your home. In addition, it can also lower your monthly payment.
Freeing Up Extra Money
In fact, refinancing your home mortgage with a low interest rate home loan may save you a considerable amount of money each month. For some homeowners, the savings could be equivalent to their cable TV bill, their energy bill or even their car payment. If you could eliminate these bills from your budget, you likely would do so in a heartbeat. You can use an online mortgage refinance calculator to determine just how much money you could save by refinancing today.
Pulling Money Out of Your Home
When you refinance your home loan, you may have the ability to pull equity out of your home. Some homeowners who have held onto their current mortgage for many years may be able to pull out a considerable amount of money and still reduce their monthly payment at the same time! With Canada mortgage rates so low, many homeowners can benefit in a number of ways. Consider all of those things that you have said that you would like to do if you only had the money. This may be purchasing new furniture for the living room, taking your kids on a memorable family vacation or any number of other things. Refinancing your home may enable you to do most or all of those things that you have been dreaming about.
Refinancing can indeed help Canadian families in a number of ways, but it may be more advantageous for some homeowners than others. The only way to know for certain how beneficial this move could be for you is to take just a few minutes to research Canadian mortgage rates at MortgageRates.ca today. Then, use an online calculator to determine what your new monthly payment and loan amount may be. You may be surprised by how beneficial refinancing your mortgage may be.