3 Reasons to Refinance Your Mortgage0
Refinancing is one option taken out by many Edmonton home owners, specifically if they have their home currently on mortgage. If you are trying to weigh the options on whether to refinance your mortgage or not, here are some reasons why refinancing may be a good choice for you.
Reason #1 – You need immediate cash
You may need immediate cash from time to time, and by refinancing your mortgage, you may be able to get the cash you need, through the equity you have in your home. Plainly speaking, the equity you have amassed through your home can act as a savings account for you, so you can get a loan and use the proceeds for a number of uses, from tuition payments to settling medical bills.
Reason #2 – Get a better mortgage rate
Some people start out by having a fixed rate mortgage but halfway through the term, they may want to take advantage of a better mortgage scheme by going for an adjustable rate mortgage. Similarly, those with adjustable rate mortgage can go for a fixed type halfway through their loan. If you want to take advantage of better rates, then you can choose to refinance your mortgage and reap the benefits of a more favorable rate.
Reason #3 – Consolidate credit card debt
Getting a mortgage loan can actually be good for your credit rating, due primarily from the equity you have in your home. However, if you have unpaid debts from your credit card, your credit score can suffer miserably. If you want to consolidate your credit card debt and help improve your credit score, you can use the equity in your home by getting out a refinancing loan.
Not everyone is encouraged to go for loan refinancing, but if you have good reasons for doing so, you can always choose to get a refinancing scheme from your existing mortgage loan.