As the weather starts to warm up, it’s natural to think about home improvements. Are you also thinking about whether you could improve your finances by deciding to re-finance your mortgage this spring? There are some good reasons why you should consider making a change now.
Why Finance your Mortgage this Spring
- You Can Get a Lower Mortgage Rate
Mortgage interest rates have continued to slip down, and if you have held your mortgage for a few years, it may look tempting to refinance now to take advantage of record-low rates.
- Convert a Variable Rate Mortgage into a Fixed Rate One
If you currently have a variable rate mortgage and are concerned that rates have sunk as low are they are going to go, you may want to convert your mortgage into a fixed rate one before they start to creep up.
- Consolidate Debt
Do you have household debt that you would like to consolidate by combining with your mortgage payment? It will make managing your debt more affordable and lower your debt service ratio.
- Take Out a Mortgage on a Paid-Off Property
Taking out a mortgage on your fully-paid-off home will give you some cash to take a special trip, buy another property, invest, or start a business.
- Consolidate your First Mortgage and Home Equity Line of Credit
If you can get a good rate on a mortgage, you may want to consider consolidating the two loans, as long as you have enough equity in your home. The home equity line of credit likely has a variable interest rate and if you are concerned that rates will increase over the next few years, it makes sense to lock it in at today’s super-low rates if you have the option.
Before you refinance your home, you’ll need to look at the matter carefully, including how much it will cost to break your existing mortgage contract if you have a closed mortgage. Seek expert advice from Mark Price, mortgage broker today to find out whether this option makes sense for you.