Owning a home is one of the most significant investments a person will make in their lifetime. Not only will your home provide a place to live for your family, but also it is added equity that can be tapped into to meet the homeowner’s additional financial needs. Tapping into this additional equity means taking out a loan against the equity in your home, also known as a second mortgage. Second mortgages give Hamilton homeowners a great amount of financial flexibility.
Second mortgages can be used to help consolidate debt, finance large-scale purchases, fund your child’s education, or simply allow you to have greater financial flexibility. Depending on the original terms of your mortgages, taking out a second mortgage can also help you secure a lower interest rate and save money over the term of your mortgage.
Most homeowners understand that over time, their needs are going to change. Speaking to a mortgage advisor can help you determine whether the terms of your current mortgage are working in your best interest.
When Should I Refinance My Home?
Securing More Favourable Terms
Of course, the answer to this question is different for every homeowner. It is
important to consult a mortgage advisor to help you determine the cost and
potential benefits of refinancing. Many times, homeowners will choose to
refinance their homes to secure a lower interest rate, shorten the term of the
loan, or covert between adjustable-rate and fixed-rate mortgages. Converting
between these two types of loans is a way for Hamilton homeowners to lower their
interest rates or eliminate concerns about future interest rate fluctuations.
Additional Financial Flexibility
Over the course of owning a home, it is possible that Hamilton homeowners might seek
greater financial flexibility through refinancing. One of the most common
reasons for refinancing a home is to consolidate debt. Debt consolidation can
help lower your rate of interest, increasing your cash flow in the short term,
and saving homeowners money in the long run. Refinancing can give homeowners
greater financial flexibility, which can be used for home improvements, putting
your children through school, or simply having more disposable cash on hand.