Website Logo Website Logo
City Life Article
Stressed About Unexpected Expenses and Rising Debt?
By intouch
December 10, 2019

CLICK HERE TO READ THE FULL ARTICLE

Mortgage refinancing gives you an opportunity to hit the reset button – get your finances under control – and save you money.

When purchasing a home, we all start off with a pretty good idea of what our monthly mortgage and household expenses will be – and we adapt to meeting our routine debt obligations. But Life Happens… and we may suddenly need to take on more debt. This usually means unsecured debt such as loans or credit cards that come with high interest rates. These debts can be difficult to pay down, and over time we may be paying a great deal of money to servicing the interest and little to reducing the debt. After all, this is what keeps the credit card companies in business. Mortgage Refinancing offers a great opportunity to hit the reset button – by consolidating your high interest debt into a lower interest rate mortgage that will save you a great deal of money.

Debt consolidation is just one of the many reasons to consider refinancing your mortgage. Other reasons include securing a lower interest rate than your current mortgage rate; to access funds for your children’s education; or, to finance a home renovation.

Whatever the reason, mortgage refinancing is an effective tool that can improve your finances. However, it’s important to assess your specific situation to determine how much you can save, and if it’s worth breaking your mortgage early and paying a penalty or waiting until the end of your mortgage term. If the benefits of refinancing including a possible penalty outweigh the cost carrying high interest debt for several years – it may be worth doing. Our team of mortgage experts can help you with custom strategies to achieve your goals.

Parents can gift money, co-sign or become a guarantor. There are several mortgage options available today where parents can use their own principal residence or other properties as equity to help their children. In addition, depending on the age of the parents, a reverse mortgage can help them gift money from their estate, while they are still alive and continue living in their home – without having to make mortgage payments. Our experts can help you with custom strategies to achieve your goals.