10 Jun Start the car!!! Start the car!!!
Well, as I’m sure many of you’re aware, Vancouver is one hell of an expensive place to live. It’s quite easy to spend over $500 on a wild weekend or if you’re like my girlfriend, on new clothes. That being said, groceries are costly, car payments add up and it’s very easy to let your finances run away from you.
You might find taking equity out of your home to pay off high-interest debt such as credit cards or bank loans can save you money. Especially since mortgage interest rates are at a forty-year low, and switching to a lower interest rate might just save you thousands in interest costs.
Be warned that you’ll have to pay a penalty, but it might be worth it. I suggest asking your Broker to calculate the savings and decide for yourself if it’s worth it.
What if I don’t have any debt? Is refinancing still worth it? Why not! Refinancing gives you the option to borrow money to invest, go on a much-needed vacation, or take care of those home renovations that you’ve always wanted to do.
Please keep in mind – Refinancing may extend how long it takes you to pay off your mortgage, but if you use your pre-payment privileges then you can cut down on the life of your mortgage substantially. By doing so, it will also reduce your amortization period (length of mortgage), which as a result, saves you $$$.
Fear the Renewal!!!!
If you do not take the time to weight your options at renewal, speak with a mortgage lender and sign the renewal offer, you could end up paying thousands of dollars extra in interest. By working with a Broker like myself, I can provide multiple mortgage options and highlight how we can save you money. Wouldn’t you want a professional looking after your mortgage instead of counting on a bank to let you know you’re losing money? Remember the banks and lenders are the ones charging you the interest.
In conclusion, by refinancing to pay off debt, invest, renovate, etc. may put you in a much better financial position.
Please do not hesitate to give me a call, or shoot me an email if you have any questions.
Have a great day!