Refinancing your mortgage can significantly reduce your interest rate, lower monthly payments, or shorten your loan term. However, understanding when and how to refinance is crucial to maximizing the benefits. Moreover, restructuring your mortgage to align with new goals and life changes can bring the biggest value.

Refinancing purely to save on interest makes sense when there has been a significant enough drop in interest rates to justify the associated costs. Improved credit scores since you took out your original mortgage can also qualify you for lower rates too.  Additionally, increased property value boosts equity, which you can access for re-investment, debt consolidation, or purchasing your next property.

When discussing refinancing, we start by assessing financial goals. Adjusting a mortgage to help with monthly cash flow may look different than a mortgage structured to save on interest, but the two don’t have to be mutually exclusive.  Accessing home equity may also factor in.  But whatever your goal, I can shop across lenders, banks, and credit unions to ensure you get the best terms for you, without you having to do the legwork.

Assessing associated refinance costs will help determine whether refinancing is financially beneficial.  Understanding your lender’s prepayment penalties work will form part of that assessment.  Legal and appraisal fees sometimes factor in, but the overall cost may warrant the investment in better mortgage terms and building your long-term wealth.

Whether you’re nearing the end of your current mortgage term or you’re considering an early refinance, please feel free to reach out. I am always happy to help you discover the opportunities available to you.