A refinance mortgage is a mortgage that pays off your existing mortgage by replacing it with a new mortgage. By refinancing a mortgage, homeowners are able to access the equity in their home. Ultimately, refinancing your mortgage can save you thousands of dollars with a better rate, pay off your mortgage sooner, afford a renovation to increase the utility or value of your home, to get one lower payment while consolidating your debt, and more.

Reasons To Refinance:

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Debt Consolidation:

You can use the equity in your home to pay off high interest debt. This is done by increasing your mortgage to pay off your debts. For most people this means lower overall monthly payments. This is a result of eliminating multiple payments into one payment at a lower interest rate. Your credit score will likely increase as a result of your debts being paid.

Eliminate A Second Mortgage:

If you have more than one mortgage then refinancing is how you would get back into one mortgage. This is done by increasing your first mortgage in order to pay off your second mortgage. This will save you money since a first mortgage will have a lower interest rate.

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Take Equity Out Of Your Home:

When you refinance your mortgage you have the ability to obtain cash in hand. You can use this to pay for unexpected expenses such as; renovations, tuition, or spousal buy outs. In some instances you can save by using this cash to make purchases. For example, if you happen to need a new car and the interest rate to finance that car is greater than the rate on your mortgage.

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Better Mortgage Rate or Terms:

You could also secure better mortgage rates or terms. This can be done because you are getting a new mortgage. You should also consider the cost of breaking your existing mortgage early. It may not be worth the lower rate.

There are many factors that go into determining if a mortgage refinance is right for you. 

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How to Get the Best Refinance Rates:

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Sure, the equity in your house has gone up!  Now what?  You can access up to 80% of the appraised value of your home.  Not what the real estate agent says it's worth.  Once you know that, subtract your current mortgage from that number and you have what is possible to use to do things like take money out to renovate, consolidate debt, support your family, improve your cash flow, or put money towards investments, an investment property or second home.

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