Reasons to Refinance Your Mortgage
Getting a lower interest rate isn’t the only reason to refinance a mortgage. Mortgage refinancing can also be used to access equity in your home, and to consolidate your debts.
Refinancing to get a lower interest rate can save you a lot of money over time, depending on the prepayment penalty and the size of your outstanding mortgage. Understanding the numbers will help you calculate how a refinance will save you money.
By refinancing your mortgage, you may be able to access the equity in your home. You could potentially access up to 80% of your home’s value, less any outstanding debt. That’s extra money for investment opportunities, home renovations, or your children’s education.
If you have enough equity in your home, you might be able to use built-up equity in your home to pay out high-interest debt through the variety of mortgage refinance options available. This includes car loan, a line of credit, or credit card bills.