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Financial Literacy

Is now a good time to refinance your mortgage? – by Colleen Lemire

March 08, 2021

Refinancing your mortgage is a way to update the terms of your mortgage loan agreement. This can happen in the middle of your mortgage term or when your mortgage is up for renewal, by simply blending your existing fixed-rate and term together with current rate offerings.

 

Reasons why you may want to refinance your mortgage

 

1. Get a lower interest rate 2. to consolidate debt 3. get access to cash

Get a lower interest rate

Having a lower interest rate means you will pay less interest, which can save you a lot of money over time. When rates are low, refinancing in the middle of your mortgage term can help you take advantage of the lower rates. At Sunova, we blend your current interest rate with the new interest rate and extend your term, giving you a lower overall rate.

 

To consolidate debt

If you have multiple loans or credit card debt, refinancing your mortgage to consolidate your debt into one payment might benefit you. Refinancing multiple debts into one can give you a lower interest rate overall and make paying off high-interest loans easier. This can be done mid-term or at the end of your mortgage term. Having one monthly payment instead of many can help improve your monthly disposable income position.

 

Get access to cash

As you pay off your mortgage, you build up equity in your house. By refinancing your mortgage, you may be able to access the equity in your home (potentially up to 80% of your home’s value). You can do this both mid-term or at the end of your mortgage term.

Sometimes, you can access the equity in your home without touching your primary mortgage. This can be a good option for short-term borrowing needs, like covering debt or purchasing a car.

Accessing your home’s equity is great if you’re looking to do home renovations and don’t want an additional loan or if you need money to support your kids’ education.

 

In some cases, you can access the equity in your home without touching your primary mortgage (using a side equity loan or home equity line of credit). Sometimes this is a better option for short-term borrowing needs, like covering debt or purchasing a car.

 

Learn more about refinancing

 

If you are looking to free up cash, either to save over time or to help with upcoming expenses, refinancing is something to explore. There are a lot of options available, however, what is best for you is often unique to you. So, to learn more and explore your options, please reach out to a lender, like me. I’m here to help.

 

 

Meet Colleen

 

I always knew I wanted to help people. I started working at Sunova 20 years ago and after working in several roles within the credit union, I realized what I like doing most was lending! I enjoy coming to work, helping members reach their goals, and making their dreams come true while building long-lasting, trusting business relationships. I am a mother of three beautiful daughters and proud gramma of a grandson who just turned two. We’re expecting our first grand-daughter in June 2021. My daughters and I all live around the Oakbank area. We love that it has the best of both worlds – cozy country, home town feel and close to city limits.

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