Need funds for a home improvement? Refinancing your mortgage may be your best solution!

[Joe Crawford]

Canadian homeowners are adding to or improving their homes in record
numbers these days and this usually represents a significant
investment. Financing such a project can be a challenge. However, if
you've built up some equity in your home, refinancing your mortgage
may be the best solution to help you find the funds you want when you
need them.

What if you already have a mortgage in place? Well, if your current
mortgage loan is charging a higher rate than some of the very
attractive interest rates now available, then you should look into the
options for refinancing your loan.
This way, you may even be able to fund your home improvement and
reduce your ownership costs at the same time! If your mortgage hasn't
completed its term, your lender may still let you renegotiate a new
mortgage now, particularly if the term for the new mortgage is a long
one. It's a good way for your mortgage lender to lock in your
business for a longer period of time, rather than risk losing it when
renewal time comes around. Even if there's a penalty to get out of an
existing mortgage, the penalty usually reduces as you approach your
renewal date. You may find that there is a relatively low cost to
renew early, versus waiting until the current term concludes.

If you're considering renegotiating your loan, you should bear in mind
that we've already seen interest and mortgage rates starting to rise
recently. If you decide to wait until the term of your current
mortgage loan expires before renegotiating, you could risk a higher
rate at renewal time, and that means paying more than you have to for
many more years to come.

If your mortgage is already at an attractive low rate, you may not
need to renegotiate. In a situation like this, it may be in your best
interest to take out either a home improvement loan or arrange for a
line of credit secured against the value in your property. Typically,
either option will provide funds at a far lower interest rate than
unsecured loans or credit card purchases.

Want to know more about financing solutions for your real estate
needs? Then, just pick up the phone and call your local Coldwell
Banker (R) sales professional. They'll be happy to sit down with you to
discuss your needs and goals and help you decide on the best way to
get there. You'll be glad you called us first!



www.kitchener-waterloo-homes.com