Refinancing to Use the Equity in Your Home
If you need access to additional funds, using the equity in your home can be a lower cost way to borrow the money than taking out a traditional loan. For example, you can use your home equity to:
- Buy an additional property
Another common reason for refinancing a mortgage is to consolidate debt such as higher interest credit card balances and loans. By consolidating these debts into your mortgage at a lower interest rate, you can save money and have all your debt in one place. Plus, our pre-payment options give you the flexibility to pay off your loan more quickly.
Mortgage refinance is becoming a popular financial remedy, especially for those who are burdened by large monthly installments or multiple debts. Mortgage refinance can prove beneficial in several ways:
- Helps obtain a lower fixed rate
The interest on a fixed rate mortgage that you took several years ago may have dropped drastically. Refinancing the existing mortgage will entitle you to avail of the reduced interest rate.
- Convert an Adjustable Rate Mortgage into a Fixed Rate Mortgage
The interest rates on an adjustable rate mortgage (ARM) might be low initially, but the fluctuations are unpredictable. Many find these constant variations in the interest rate taxing and prefer to refinance the mortgage into a secure, fixed rate one.
- Consolidating multiple mortgages into one
Paying the installments of two or more mortgages at the same time can be quite a burden for most individuals. The best solution in this case is to consolidate the multiple mortgages into one, with a fixed monthly interest rate and a longer repayment duration.
The proceeds from your refinanced mortgage can be used to pay off credit card bills and other similar expenses.
- Make cash provisions for emergency situations
You can refinance your existing mortgage to free a larger amount of cash, depending on your home equity. Since a mortgage is a secured loan, the interest applied is considerably lower than that of an unsecured loan.
Verico Capital Mortgages Inc. helps you decide whether it is the right time for you to refinance. The decision to refinance should be carefully evaluated to avoid any complications at a later stage. By carefully studying the status of your current mortgage and comparing it to your income and other debts, we help you pick the refinance solution that best suits your current financial status.
Verico Capital Mortgages Inc. offers some of the lowest and most competitive mortgage refinance rates in the market. Regardless of your requirement, whether it is to consolidate existing mortgages or obtain a better rate, we get you the best deal possible. Our experienced mortgage professionals, who have extensive knowledge of the mortgage industry, will provide the necessary guidance that you need in making the right refinance decision.