Nowadays, you would be hard-pressed to find an adult who does not owe some amount of money to one or more credit card companies, banks, finance companies, or is in some other form of debt. Many people find themselves in a situation where refinancing is necessary or beneficial. The cost of carrying high-interest-rate debt can become unbearable and refinancing or debt consolidation may be the best option to reduce that debt.
Consolidating debt refers to acquiring a single larger loan to repay all other loans, resulting in a consolidated or combined debt with only one payment each month at a lower interest rate. By refinancing or consolidating debt, we may be able to significantly lower your interest rates or your monthly payments, which can help free up some cash for savings, investments, or for other reasons that you may need the money.
When lower mortgage interest rates are available, refinancing your mortgage can save you money. If you do own a home and currently have high-interest-rate debt, it may make sense to consolidate your debt through a first or second mortgage or a home equity line of credit (HELOC).
Reasons to Refinance may include, but are not limited to:
- Replacing an Existing Mortgage at Renewal
- Debt Consolidation
- Home Improvements
- Switch Mortgages
- Combine 1st & 2nd Mortgage
- Consolidate Consumer Proposal
- Lower Interest Rate & Monthly Payment
- Equity Takeout
- Major Purchases (i.e. vehicle, wedding, furnishings, etc.)