Things have gone well with your current mortgage, but could they be better?
In some cases, looking into refinancing options makes a lot of sense.
If any of the following applies to you, it’s worth the effort to contact one of the Clovermortgage.ca - mortgage brokers in Toronto and see what can be done. A change may be just what you need right now.
Your Credit is Better These Days
Things have changed since you first received the mortgage. You’re making more money now and some of the unfortunate events that impacted your credit score have fallen off your records. The result is that you have a higher score now. That could translate into being able to lock in more favorable mortgage terms.
The only way to know for sure is to talk with a broker and see what sort of offers come your way. Assuming that you can get better terms, making the switch is the way to go. If there’s little difference between the offers and what you already have in place, the only thing you’ve lost is a little time and effort.
Interest Rates are Lower
The current interest rates are lower than when you first locked in the current mortgage. Now is a great time to check into refinancing efforts and see if the offers include rates that are better than what’s currently in place. Take the time to project how much you would save by refinancing. In some cases, the amount you save could add up to quite a tidy sum. That’s especially true if you still have a decade or more to go on the current mortgage.
Lower Payments Would Help the Budget
While you’re managing to make all of your mortgage payments on time, it’s a bit of a struggle some months. It would be nice if they were a little lower. Since you’ve never been late with a payment so far, it might be possible to refinance the current mortgage for a slightly longer term. If interest rates are more competitive today, the combination could free up a reasonable amount of your monthly income and make it much easier to continue paying on the debt.
You’d Like Some Cash to Settle Unsecured Debt
You’d like to get rid of some debt, but the idea of a consolidation loan doesn’t leave you feeling warm and fuzzy. One way to get the money you need to pay off those credit cards and other debt is to reconsiderate your mortgage and ask for a little more than what it would take to pay off the current mortgage. This approach will eliminate all those other bills and leave you with a mortgage that you’re already used to paying every month. That will truly make your budgeting much simpler.
There are other reasons to consider refinancing an existing mortgage. Take a look at your current financial situation and what you would like to do to improve it in some way. Talk with a broker and see what sort of terms and conditions refinancing would involve. If it looks like refinancing would strengthen your financial position, then go for it. You’ll be glad that you did.