Refinance
Refinancing allows you to access your home’s equity to accomplish your goals.
The new funds can be used for debt consolidation, renovations, investments, purchasing a property, and more. If you already have a mortgage, the new mortgage is used to pay off your existing mortgage, cover any costs associated with refinancing so that no out-of-pocket funds are required, and the balance of funds can be used as desired.
Not only can you access equity when refinancing, but you can extend your amortization period for payment relief.
Even if payment relief isn’t required now, consider keeping your base payment low in the event of future hardship and using your prepayment privileges to voluntarily pay off your mortgage faster if desired. Our office will carefully consider the details of your new mortgage to ensure that it is the lowest cost option both now and in the future.
Refinancing can be done at any time; you do not have to wait until renewal. Through a full review of your financial picture, our office can make a recommendation on whether the most financially savvy decision is to refinance mid-term or wait until maturity, setting you up for success.
How our client saved by refinancing to consolidate debt:
Even if market rates are higher than your current mortgage, you may benefit from consolidating higher interest debt.
Since interest rates on mortgages are typically lower than unsecured debt, consolidating debt into your mortgage allows more of each payment to be applied to the debt itself, making you debt free faster.
The client opted to refinance to consolidate her line of credit and credit card into her mortgage, closing 10/03/2022.
Before Refinancing
Mortgage – $161,716
(5 Year Fixed of 2.99%, 25 Year Amortization
APR of 3.31%)
Lines of Credit – $30,922
Credit Cards – $19,477
Total Monthly Payments – $1681.74
After Refinancing
Mortgage – $215,000
(5 Year Fixed of 2.99%, 25 Year Amortization
APR of 3.31%)
Lines of Credit – $0
Credit Cards – $0
Total Monthly Payments – $1171.94
Monthly Savings: $509.80
Annual Savings: $6117.60
The client chose to extend her amortization period for additional payment relief.
However, she could have chosen a shorter amortization period while still experiencing savings:
30 Year
Amortization
Savings of
$509.80 per month
=
$6117.60 per year
25 Year
Amortization
Savings of
$407.93 per month
=
$4895.16 per year
20 Year
Amortization
Savings of
$246.78 per month
=
$2961.36 per year
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Ready to see how we can
help you REFINANCE?