Many homeowners choose to consolidate their debt by refinancing their home mortgages. If this is something you would like to do visit Brampton mortgage brokers for some invaluable advice and to see what options are open to you. A refinanced mortgage can save you thousands on potential unnecessarily high interest. For example, credit card debt will cost more to pay off the longer it takes to clear their balance. By refinancing, you can clear the entire balance, which then allows that monthly payment to be put to better use on other things.
Refinancing by tapping into the equity of your home to use on debt consolidation will produce several financial advantages:
Fixed-Interest Rates That Are Lower
With a refinanced mortgage, your interest rates are significantly lower than what you would normally be paying on a credit card. It does mean that you will owe more on your mortgage over time, but with the lower interest rates, you are able to free up money, which you can then use on the mortgage itself. This will help get your mortgage paid off faster and builds up your home equity again.
One Payment A Month
With a refinanced mortgage you are making monthly payments simplified. Rather than paying several payments to different companies with higher interest rates, you are just making a single payment each month at a much lower rate of interest.
Improves Your Credit Score
Even for those whose credit is a bit damaged, using debt consolidation to pay those high-interest debts will greatly improve your credit rating. To credit bureaus, paying off a debt in full shows them that you are able to handle your debts well.
You will need to do some research, go over your spending habits, and speak to us, your Brampton mortgage brokers, about the options that are available to you. The first thing we will do is review your mortgage so that we can determine what your disadvantages and advantages are. We will also want to calculate all of the fees involved with the refinance option you are looking at. We do have some promotional offers where all costs to refinance are covered, so it’s completely free to you!
We will be sure to compare the different interest rates as well, and whether it’s better to go variable or with a fixed rate.
A mortgage refinance to consolidate debt can be advantageous but you need to bear in mind that it is also a large commitment and needs to be carefully considered. The best advice is to speak with Lotus Loans and Mortgages Corporation, your licensed Brampton mortgage brokers, who can offer you the best options.
Whether you are interested in learning more or you are ready to get started, give us a call today at (905) 791-1100! We are already happy to help!
