Mortgage refinancing is the process of renegotiating or replacing your existing mortgage. There are a number of reasons that you may wish to refinance your mortgage. Some reasons for refinancing include:- You may be part way into the term of your mortgage but feel that mortgage interest rates have bottomed. In this case, you might want to establish a new 5-year mortgage to take advantage of the current low rates.
- You may be carrying non-mortgage debt at a high rates of interest. For example, if you have credit card debt or car loans but you have equity in your home, you may seek to increase your mortgage to free up capital to pay down your high interest debt.
- If you have a mortgage but you also have investments, you might consider using your investments to pay down your mortgage. You can then borrow to purchase new investments. The net effect of this is that you have swapped non-deductible mortgage debt for tax-deductible investment debt.
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