Refinancing before your mortgage is up for renewal involves looking at your current mortgage and calculating what the penalty is to break your mortgage early. The closer you are to your end of term date, the lower the penalty usually is.
••So when does it make sense to refinance early? ••
🔻If the current interest rate is lower than your mortgage interest rate, often it makes financial sense to refinance early and lock in with that lower rate.
🔻To consolidate debts, lowering your overall monthly payments. This means paying off high interest credit card balances or car loans, etc., faster.
🔻To access and utilize some of the equity in your home to make large purchases, renovate, or to use as a down payment for an investment property. This involves a home appraisal to assess the current market value of your home. Most often a mortgage or home equity line of credit is the cheapest cost of borrowing.
Reach out to chat about your options ☺️