Refinancing your mortgage can be one of the smartest financial moves a homeowner can make. But it’s also one of the most misunderstood. With outdated advice and online noise, many homeowners hesitate to explore refinancing even when it could save them thousands.
I want to clear the air!
Here are some of the most common refinancing myths and the facts that could make a big difference for your current situation.
This is the biggest myth in my experience. While locking in a lower rate is one reason to refinance, it’s far from the only one.
Many of my clients refinance for the following reasons:
Even if your rate stays roughly the same, refinancing to eliminate high-interest debt or to free up monthly cash flow can lead to significant long-term savings.
It’s true that breaking your current mortgage early can come with a penalty. But there are some situations where the penalties are still worth it. If you’re considering refinancing, we will look into your current rate and remaining term, a new rate and term and the exact penalty amount.
From my experience, many homeowners still come out ahead. Think of it like paying a small fee today to save thousands in interest tomorrow. The key is running the correct numbers, which is my specialty!
This was true years ago. But, it’s not true anymore!
With digital document collection, online applications, and broker support, refinancing is often faster and easier than your original mortgage approval. Most of the heavy lifting (like comparing lenders and negotiating rates) is handled for you.
I guide clients through the entire process and ensure refinancing aligns with their long-term financial strategy. While there is paperwork and an approval process with a new lender, a little hard work isn’t a bad thing! Especially if it’s going to save you money for the next 5 years.
Another costly misconception.
You don’t need to wait until renewal to refinance. You can refinance at almost any time. It all depends on whether you’re switching lenders, consolidating debt, or tapping into your home equity. The key is knowing when the numbers work in your favour.
Sometimes, the best opportunity comes mid-term, especially when significant life changes happen (like renovations, kids, or new investments).
Refinancing isn’t just a “last resort” move, as some people think. It’s a strategic financial tool. As we mentioned in refinancing myth 1, there are several reasons people refinance. One of the biggest reasons why someone will refinance is to use the money for other investments.
For example, clients will refinance to:
These options will help you achieve your broader financial goals, if it’s possible in your situation. Sometimes a refinance isn’t the option for a current fix, but a think-ahead idea.
Refinancing isn’t one-size-fits-all, but it’s almost always worth exploring. The right refinance strategy can save you on interest, reduce payments and unlock your home’s equity.
The key is having someone who can crunch the numbers, explain your options clearly, and align the refinance with your bigger financial picture. All this happens with a phone call and a decision to look into this mortgage option.
If you’re ready to see if a refinance is right for your mortgage, give me a call at 250-826-3111, fill out the contact form below or get pre-approval yourself on my website today! I look forward to hearing from you soon.
Let’s get your application off the ground.
