Sometimes what you have to pay towards your mortgage is more than you can bear, and that’s when mortgage refinancing comes in the play. Here were going to talk with how you can refinance your mortgage, but you know it’s time to refinance your mortgage, and other solutions you can try instead. Always remember: just because you’re paying a slightly higher interest rate now doesn’t mean you should refinance! Sometimes the savings just aren’t worth it, and there may be another way to bring your costs down.
What is mortgage refinancing?
When you have a mortgage that isn’t treating you right, what can you do? If you stop paying you’ll end up losing your home – but there’s always another option! With mortgage refinancing you’ll be able to get a better rate, bring down your monthly costs and if you play your cards right you may just be able to pay it off earlier than you thought you would. It’s important to make sure that you really need to do this before you start looking for a deal, so talk with one of our Toronto mortgage brokers today and see if this is the right choice for you.
Are there closing costs?
Yes, mortgage refinancing does have closing costs. You’re going to be paying just about the same as you did to get your mortgage originally, so it’s important to make sure that you’re going to see real, tangible savings. If you’re only going to save a percent off your monthly interest rate or end up seeing $20 a month off, it might not be worth it. Working with one of our Toronto mortgage brokers will help you understand the real savings you’ll see and if this is the best course of action for you.
Doesn’t this lengthen the life of your mortgage?
Mortgage refinancing will extend the life of your mortgage – but also the life of your payments. If you only have 18 months of less to pay off your mortgage, you may just want to tough it out. Refinancing your mortgage needs to be a last resort, not a first one.
If you have more than 18 months left or you’re in danger of going underwater on your mortgage, or you’re just having trouble keeping up with your payments, this may be the right choice for you.
Know if it’s right for you
If you’re just trying to save a little money, you may get more than you bargained for – closing refinancing can cost thousands of dollars and totally negate any savings that mortgage refinancing could help you save. If you’re not sure what to do or need some help, give us a call. We’ll help you figure out if mortgage refinancing really is the best way for you to go. Visit our mortgage refinancing page today to learn more!
We’re expert Toronto mortgage brokers that understand every borrower and every mortgage is different – it’s all about making sure everything works for you, and that’s what we’re here for.