Lethbridge Alberta Mortgage Refinancing
Refinancing vs. Renewing
Refinancing a home is where you replace your existing mortgage with a new one. There are many reasons why it might make sense to do this:
If current interest rates are lower than when you originally negotiated your existing mortgage, you may be able to save thousands of dollars by renegotiating, even if you have to pay a penalty to do so. Your broker can help you calculate the cost/benefit so that you make the best decision.
If you have high interest unsecured debts, such as credit cards and department store or car loans, then you likely are better off using available equity in your home to pay them out. After all, both the monthly payments and the interest rates are usually higher on these types of credit than a mortgage.
Purchasing an investment property
Utilizing the equity in your home can help you buy an investment property or second home such as a cottage or even a residence for a child attending college or university. This can be a great way to lower the total cost of education.
Renewing a Mortgage
About 80% of Canadians make the mistake of just signing the Mortgage Renewal Offer that their existing lender sends at the end of their term. Did you know that on average this rate is more than 1% higher than the going rate of interest? And to simply switch to a lender with lower rates can often be done at no cost to you!
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