Homeguard's Refinance Options

Lower Interest Rates

This is one of the most popular reasons consumers consider refinancing their mortgage. Lower interest rates could reduce your monthly payments, or reduce the length of your mortgage term, potentially saving you thousands of dollars in interest in the long run, allowing you to build your home equity faster. Typically, it is worth refinancing if the interest rates have decreased by 2% or more.

Change in Term

You can also decrease, or increase, the length of your mortgage. If you are looking to decrease your monthly payments then increasing the term life can help. However, it is important to note that in the long run you will spend more on interest payments.

If you want to decrease the term of your mortgage your monthly payments will increase, but you will be able to own your house in a shorter time period. Other variables can also impact the term of your mortgage, such as interest rates.

For example, if interest rates fall, and your payments remain the same, your term will decrease.

Converting the type of mortgage

Depending on economic conditions converting from a fixed-rate mortgage to a variable rate mortgage, or vice-versa, can be beneficial. If interest rates are expected to increase over the term of your mortgage changing from a variable rate to a fixed rater mortgage can result in lower interest rates, and reduce concern over future rate increases. Similarly, if interest rates are expected to decrease, switching from a fixed rate to a variable rate mortgage can be advantageous.

Talk to your Homeguard agent about whether you should look at refinancing your mortgage based on current economic conditions and your personal mortgage situation.