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Why Take Advantage Of Mortgage Refinancing In Edmonton?
People in Edmonton purchase homes for a wide range of reasons. Some people want the benefit from the stability of owning a property like a home, while for others, it is an investment. Regardless of the reason, the truth is that homeownership has over the years proven to be an excellent, stable long-term investment. It is often an investment that pays both in the short and long term. But the question you’re probably asking is, how does mortgage refinancing in Edmonton factor into buying a home?
Most people reading this may have decided to purchase a home when interest rates were comparatively lower. We know many who took advantage of those low-interest rates to buy their first home. As a local mortgage broker in Edmonton, we’ve witnessed many people pulling out equity for a home, college expenses, high-interest debt consolidation and home improvements.
Canadians have been borrowing their home’s equity more than ever before, often taking out billions of dollars a year in cash. That said, mortgage lending is still one of the cheapest forms of borrowing. You can unlock around 80% of the home’s value and then convert that into funds via a refinance. That’s where mortgage refinancing factors into the mortgage industry, at least for homeowners and investors in Edmonton.
Enjoy A Lower Fixed Rate
As an experienced local mortgage broker in Edmonton, we often advise people to refinance their mortgage when it is possible to take advantage of a lower fixed rate. Many homeowners don’t know this, but the original fixed rate they received may have significantly decreased since then. That’s why we advise clients to take advantage of that lower rate by refinancing their mortgage.
Switch from Variable to Fixed Interest Rate
Another reason why we advise that clients choose to refinance their mortgage is that with it, they can switch from having a variable interest rate to a fixed rate. Many people who received a variable interest rate five or eight years ago enjoyed at least, for the most part, a low-interest rate. However, since then, things have changed, and many people don’t want to deal with the fluctuation associated with the varying rate.
A fixed mortgage interest rate helps secure your interest rate, which could save you money in the long term. Also, paying two mortgages for one property is expensive so consolidating them makes more sense.
Loads of Other Reasons Why You Might Want to Refinance
While the above are some of the most common reasons people should choose mortgage refinancing in Edmonton, they aren’t the only reasons. Some may want to pay for their child’s education, others for a wedding or maybe medical, or improve their credit score to score to take advantage of a lower interest rate.
As local mortgage brokers, we’ve also helped people refinance their mortgage to pay off a high-interest rate credit card or car finance. Regardless of the reason, refinancing is an option worth considering. However, you might want to call to discuss your options, which may not necessarily be limited to refinancing your mortgage.
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