Smart Reasons Why You Should Refinance your Mortgage


Anybody would like to get the lowest mortgage rates in Ontario. That is why a fall in the interest rates is usually the best time to refinance your mortgage. 

This blog gives three reasons why refinancing your existing mortgage is a great idea. 

1 - Reduce your monthly payment and interest rate

 When you lock in a cheaper interest rate as a borrower, you might save thousands of dollars over the life of your loan. A lower interest rate often translates to a cheaper monthly mortgage payment. 

The interest you save thus, might be used to pay down other interest-heavy debt, put more money in your savings account, or contribute more to your retirement fund.

 2 – Reduce the length of your loan period

 Many people start off with a 30-year mortgage and after a few years, refinance to a 15-year fixed-rate mortgage. The mortgage is paid off sooner this way and it also saves them a significant amount of money in interest during the loan's term.

As mortgage rates on 15-year borrowings are lower than 30-year mortgage rates, you may be able to reduce your term without a large increase in your monthly mortgage payment.

3 - Commit to a fixed rate of interest

Borrowers with adjustable-rate mortgages (ARMs) frequently replace their loans with new fixed-rate loans. This is particularly true when an interest rate adjustment is coming, and refinancing your existing loan can result in a reduced fixed rate.

Conclusion

The process of refinancing provides many benefits, but you need to do adequate research beforehand. If you wish to get the lowest mortgage rates in Ontario, please connect with Mortgage Capital Investment. 

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