Many of us drew a collective sigh of relief when putting 2020 behind us, concentrating on the hope for better days to come in 2021. From a financial perspective, 2020 definitely had its challenges. One of the best ways to benefit from a new year is to look at ways to get your finances in order that could put you and your family in a more comfortable position moving forward.


Refinancing your mortgage and freeing up some money to pay off unsecured high-interest debt on your credit cards, lines of credit and/or loans, can be lifechanging. Not only can freeing up equity in your home to pay off debt help keep more money in your bank account each month that you’d otherwise lose in interest payments but, thanks to interest rates sitting at historic lows, securing a lower rate now can save you a lot more money in future – possibly thousands of dollars per year.


With access to more money, you’ll not only be better able to manage your current debt load, but you can also think ahead by earmarking funds to make some home improvements, pay for your children’s education or put toward investments. 


When’s the best time to refinance my mortgage?

It’s important to understand that there are penalties for paying your mortgage out early and refinancing your mortgage could extend the time it takes for you to become mortgage-free. Your mortgage agent will be able to help you make an informed decision based on your specific situation. Sometimes it makes more sense to refinance right now, while other times it’s smart to wait until closer to your renewal date.


By looking at your options to pay off outstanding debt and roll it into your mortgage at a lower rate, you can put yourself and your family in a better financial position for 2021 and beyond. 


Have questions about refinancing your mortgage to ease your financial obligations in 2021? Answers are a call or email away!