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3 May


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Posted by: Crystal Stewart

Looking to access equity in your home to pay off debt or renovate this spring? Let’s talk about refinancing your mortgage. When we refinance we are looking to move debt from bad (unsecured) debt to good debt where it is secured against an appreciating asset. Having high usage of your credit limits is likely eroding your credit score and costing you more over time than is necessary.

The major benefits of a refinance are puting all expenses into one low interest debt, reducing your overall monthly interest cost yet most important for families is the monthly cash flow improvement!!

Many people simply get a bit too deep into multiple lines of credit, new car payments and credit cards. It happens all too quickly where people overestimate what they can comfortably afford. The focus of debt cost unfortunately has shifted where folks are not concerned about the total debt amount or payoff schedule, the determining factor seems to have evolved to whether they can handle the monthly payment; cars, toys, vacations all start to add up.

This is a prime time to reassess your current financial situation. The market is hot right now and equity in your home has most likely increased a large amount! If you owe significant amounts on credit cards, lines of credit or other consumer debts, there may be enough headroom in your equity to allow you to refinance. Another prime reason to consider a refi would be property improvements and renovations, where you may be accessing equity yet the added debt may be directly offset by the increase in your property value and quality of living.

Ultimately, it is best to consult with a mortgage professional first. Let the math and numbers show you whether it makes sense to make the change. Our job is not to sell you a mortgage. We offer solutions or strategies through showing the numbers in a way that may have not occurred to you before! I can be contacted at your favouite method of communication – Text, Call, Email, Facebook, Instagram etc. Contact me for a FREE evaluation of your home value, mortgage and refinancing options!