Consolidation and Refinancing Mortgages Markham
Markham homeowners are
finding it in their best interests to consider debt consolidation in today's market. A debt
consolidation loan is employed by banks, credit unions, or finance companies to
help borrowers get loans to pay off outstanding debts by consolidating them
under one loan. As mortgage interest rates are lower than ever,
homeowners want to reduce the interest on their loans by consolidating their
debts into their mortgage payments. Full-debt consolidation has the potential to save homeowners up to
75% off their monthly mortgage payments – sometimes even more! This is why debt
consolidation is a great option and works hand in hand when refinancing your
mortgage. The best way to consolidate debt is to refinance your mortgage with
professionally trained and experienced brokers from the Independent Mortgage Brokers Association (IMBA).
to Consider Debt Consolidation
Now is the time to
take advantage of the low-interest rates and pay off high-interest debts from
large credit card companies. Even if you are not trying to pay off debt
refinancing, your mortgage can save you money with reduced monthly payments of
interest. Because refinancing is gaining popularity, many lenders in Canada
offer services regarding debt consolidation, which is why major lenders build
strong relationships with each other so that crossover between services such as
mortgages are easier to process.
One of the myths
surrounding debt consolidation is that they are tied to your first and/or
second mortgage. Most people think that debt consolidation is riddled with
hidden fees and steer clear. However, second mortgages do have high interest
rates and hidden fees, which may be the source of the misconception. When refinancing
your mortgage, you can often add payout penalties and extra costs such as a closing cost to your mortgage, so you don't
have to pay them up front. Arranging debt consolidation can take about a week,
making it an easy and quick solution to fixing finances.
There are different ways to consolidate
debt. You can consolidate the debt by refinancing your first mortgage, through
a second mortgage, or with a home equity line of credit.
- Your monthly payments
are consolidated into one.
- Currently interest
rates are low, which can save you money in the long term.
- You can stabilize your
debt payments into a set time frame.
- Extra fees are usually
- You need security, such
as collateral or equity.
- Interest rates are
generally higher than that typical of a home equity line of credit.
- Unsecured debt
consolidations generally have higher rates.
Altogether consolidating your debt can
be your answer to paying off outstanding debts through refinancing your home.
However, there are some factors, such as your credit score, net worth, financial
relationships, etc., that will be taken into account and affect your interest
rate. Make sure to consult with a licensed mortgage broker before consolidating
your debt when refinancing mortgages in Markham.