Refi­nanc­ing your mort­gage is done for a num­ber of rea­sons. The most com­mon are due to ren­o­va­tions that are wanted and the finan­cial resources aren’t imme­di­ately avail­able, or for the pur­pose of con­sol­i­dat­ing debts. Using the equity in the home is also a great way to lever­age your invest­ments or to buy an invest­ment prop­erty. Not to men­tion that many use the equity in their home to buy a cot­tage, or a vaca­tion prop­erty in the U.S.

With the accu­mu­la­tion of equity in the home, it rep­re­sents an oppor­tu­nity to bor­row from your­self at rates that are lower than what you would gen­er­ally pay for an unse­cured loan or line of credit, and in larger amounts. If you carry a large debt load, this could rep­re­sent hun­dreds of dol­lars or more in cash flow sav­ings by con­sol­i­dat­ing bal­ances, not to men­tion the thou­sands of dol­lars in inter­est that could be saved.

Large ren­o­va­tion projects gen­er­ally require more funds than most fam­i­lies have imme­di­ately avail­able so it is usu­ally eas­ier to add the cost of a ren­o­va­tion project to a mort­gage. Adding $25,000 to a mort­gage for the cost of a new kitchen is eas­ier to do as a $150 per month increase to a mort­gage pay­ment ver­sus find­ing the funds in the fam­ily bud­get to pay for it cash.

There are dif­fer­ent ways to finance these projects and using the assis­tance of a good mort­gage bro­ker can help you to bet­ter under­stand the pros and cons of these options.

If you’re giv­ing some thought to a large ren­o­va­tion project, or want to reduce the stress of many credit card bills, then it’s def­i­nitely time you had a con­ver­sa­tion with Lee and he’ll review the var­i­ous fac­tors to con­sider when mak­ing these deci­sions and help you come up with a strat­egy you can be happy with.