As a mortgage broker Milton, James Loewen and the team at Loewen Group Mortgages are your local qualified professionals who can help you with your specific mortgage needs.
Whether you’re looking to buy a new home, renew a mortgage or curious about refinancing a mortgage, our team can help ensure you make the right decision.
When it comes to mortgages, one of the most popular things that people are interested in is refinancing. There are many benefits to refinancing your mortgage that can give you an advantage as you move forward in your home. From saving money to peace of mind, a mortgage refinance can be a great move on your part.
But how do you know when, or if, you should refinance?
You want to lock-in a lower rate
Perhaps the best and most common reason to refinance is to secure a lower interest rate on your mortgage. Especially with rates being as low as they have, many people are choosing to take advantage of a refinance.
Generally, it’s a good idea to lower your rate if you can save a minimum of 1%. Doing this can also lower the amount of money you pay each month towards a mortgage payment as well as build home equity at a quicker pace.
You want to switch the type of rate you have
When you have a mortgage, you will either be setup with an adjustable rate or fixed rate mortgage. This can be beneficial in a number of ways but also depends on the type of person you are.
A fixed rate allows you to lock-in to a specific rate for the duration of the term whereas an adjustable rate fluctuates with the market.
For example, someone who likes to know exactly how much money they’re going to be paying every month would be better suited with a fixed rate mortgage. On the other hand, someone who perhaps doesn’t plan on staying in the same home long-term would be better off with an adjustable rate mortgage.
You want to reduce your loan’s term
Another big reason to refinance a mortgage is to lower the amount of time that your loan is for. When interest rates fall, homeowners can refinance to a mortgage with a lower rate for a shorter term. Doing this would result in an equal or near-equal monthly payment that they were previously paying, however they will not have to pay it for as long.
If you believe that refinancing might be something you’re interested in, we encourage you to consult a leading mortgage broker Milton, ON today, such as someone from our team!
Check out our Free Refinance Program to get started!