Debt consolidation is the process that provides you the opportunity to use your existing equity to pay off your high-interest consumer debt, while borrowing that money (equity) at a far lower interest rate in the form of a mortgage. If your lender agrees to it, they will pay off your debts along with your previous mortgage and combine all your payments into a single monthly mortgage payment at a lower interest rate. Refinance rates tend to be far lower than other debts. For example: A. Credit card debt can be at 21.99% Interest B. Retail store debt could be above 27% interest C. Car loan…

If you find that your current mortgage rate is too high, and you expect the rates to drop, refinancing is a strong solution that allows you to take advantage of the money-saving opportunity that you will find within that new and improved market rate. Although there may be pre-payment penalties involved, the lower rate often will far exceed that upfront cost. Your mortgage broker can help evaluate your situation and help you understand your refinance options to ensure you make a beneficial decision.

Besides debt relief, refinancing offers you the opportunity to access your home equity to fund expenses like home renovations, a down payment for a second property, or investment funds. Alternative reasons to refinance are, but limited to, stock investments, health costs, emergency funds, traveling, weddings, toys, and more. It’s important to not confuse refinancing with mortgage renewals or HELOCs. While sometimes thought of as the same, refinancing is very different from renewals and HELOCs. These financial options can help you change your debt situation and cover new expenses but aren’t the same as refinancing. Let’s look at them a little closer to…