Advantages Of Refinancing Your Mortgage

Considering the prevailing low-interest mortgage rates in Canada, many homeowners are wondering whether refinancing their mortgage can be beneficial for them. Digital and print media has taken a liking to the low interest rates, and they have diligently dished this news to many Canadian homeowners. Amidst all the brouhaha surrounding mortgage refinancing, if you look at it prudently, you will find that refinancing can actually work well for a lot of people. However, saying that refinancing your mortgage will work for every Canadian homeowner will not be apt because every homeowner has different set of assets, liabilities, financial goals, etc. In the following paragraphs, we will take a look at the advantages that refinancing a mortgage can have for the homeowner.

Low Interest Rates

Homeowners who took out a mortgage when the housing market was at a high can definitely save some money by paying lower interest rates. Before the sub-prime crisis gained notoriety, it was not uncommon for lenders to charge an interest rate of 6.5%. With interest rates hovering at 3.5%, refinancing your mortgage can give you an interest reduction of around 3%. Although there are a lot of other factors that you need to look into before you give refinancing a serious thought, but a saving of more than 2% has always been thought of as a financially wise decision.

Eliminate High Interest Debt

Mortgage loan is not the only debt that takes a pie out of our paycheque. Most Canadians have to deal with high interest rate debts such as credit card debts, student loans, auto loans, etc.

 

For more details visit @ http://www.canadalend.com/