With the low interest rates and market situation, I’m predicting a lot of refinances this coming year. Keep your eyes peeled this week for a series of posts where I break down the process and what to expect.
A refinance is where you break your existing mortgage and replace it with a new mortgage with different terms (new amount, new interest rate, new everything).
There are several compelling reasons why homeowners refinance their mortgage:
- To get a lower interest rate
- A much needed financial reset (pay off high interest debt, credit cards etc)
- Renovate (pool, new basement, new kitchen etc)
- Invest in the future (buying a cottage or a rental property)
- Large purchase (wedding, tuition, business)
It’s said that most people change their mortgage every 3.5 years. If you are looking for a cost benefit analysis of your current situation (no cost to you and no obligation), please reach out below: