With interest rates in Canada sitting at a record low (0.5%), now may be the best time to consider refinancing your mortgage. Refinancing is in order to pay off debt in other areas. Many people may see this as the same as using a credit card to pay another credit card bill, but this perception is entirely inaccurate. Interest rates on a mortgage are almost always far below the interest rates of credit card debt and other loans. Consolidating that debt into the lowest interest rate possible will reduce your overall monthly payments, saving you money in the end.
Refinancing allows you to increase your total mortgage in order to acquire some extra equity right away. Your mortgage payments may or may not increase, depending on a number of factors. You also may be penalized for refinancing before the end of certain terms. It’s always best to speak with your mortgage specialist to see when the best time to consider refinancing is.
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Rasha Ingratta & Mortgage Associates
By Mortgage Intelligence
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