Back to Blog
18 Jul

When Should You Refinance Your HRM Mortgage?


Posted by: Bob Goudey

Aside from home purchases, refinancing is one of the most common activities in the mortgage industry. As an experienced HRM mortgage broker, I have completed several refinances to help hundreds of clients.

However, not every person that I have helped came to me knowing exactly what a refinance was or how it could benefit them. The trick with refinances is that it must be done at the right time for it to benefit you. While there are many factors to consider, here are a few that will help get you started when it comes to a decision on refinancing your mortgage.

1. Interest rates are low

You have been keeping an eye on interest rates and now they are at a low level. This is the most common reason why clients choose to refinance their mortgage as it can save them a good amount of money in the long run. However, depending on the type of rate you currently have (fixed or variable), you may have to pay a penalty. Speak with a mortgage broker to know exactly what you are getting into and the potential benefits and repercussions.

2. Pay off debt

If you own a home and have a fair amount of equity in it, refinancing a mortgage can provide you with additional money to help pay off existing debt. For example, if you took out a loan to buy a new car or are currently paying off school tuition, you could have the opportunity to pay off the debt by refinancing.

3. Lower term length

Another popular reason that clients refinance their mortgage is to bring down the term of their mortgage. For example, we look at two mortgage terms: 30 years and 15 years. If interest rates are low enough, switching from a 30-year term to a 15-year term may cost you just as much or a mere amount higher. The benefit is that you would shed 15 years from your term without putting yourself in a financial hole.

However, before committing to a refinance it is important to speak with a qualified HRM mortgage professional, such as myself, in order to ensure that you are making a well-educated and informed decision.

Seeing low interest rates is nice and can be attractive to people looking to save money on their mortgage, but there are many factors that come into play when it comes to a refinance.

For more information on how I can help you achieve happiness with your mortgage, talk with me today!