Thinking About Refinancing Your Mortgage? Here’s What You Need to Know 💡🏡

So, you’re considering refinancing your mortgage? Great choice! Refinancing can potentially save you money, but it’s essential to weigh the pros and cons. Let’s dive into the details.

Pros of Refinancing:

1. Lower Interest Rates: Refinancing at a lower rate can save thousands over the life of your loan, reducing monthly payments and increasing your savings.

2. Shorten Your Mortgage Term: Switch from a 30-year to a 15-year mortgage to save on interest and become mortgage-free sooner.

3. Access Home Equity: Tap into your home’s increased value to finance renovations, pay off high-interest debt, or fund education through an equity take-out refinance.

4. Extend Your Mortgage Term: Lower your monthly payment by extending the mortgage term, though this increases overall interest expense.

Cons of Refinancing:

1. Closing Costs: Appraisal, legal, lender, and broker fees can add up. Calculate how long it will take to recoup these costs through your new mortgage savings.

2. Prepayment Penalties: If your mortgage isn’t at maturity, expect a penalty from your current lender. Ensure you know this cost upfront.

3. Extended Loan Term: While lowering monthly payments, extending your loan term adds extra years of payments and more overall interest.

4. Short-Term Plans: If you plan to sell your home soon, refinancing may not save enough to offset the closing costs and fees.

Always discuss your options with a mortgage professional. They can review your needs and situation to find the best solution for you and your family.

Let’s get in touch if you have any questions.

Your trusted & friendly Mortgage Agent:

Divyang Patel – 647.740.8902

www.divyangmortgages.ca