๐The term ‘๐ ๐ผ๐ฟ๐๐ด๐ฎ๐ด๐ฒ ๐ฆ๐๐ถ๐๐ฐ๐ต’ is often used interchangeably with the ‘Refinance’ , however, they are not the same and function very differently.
๐A mortgage switch/transfer involves moving your current mortgage from one lender to another without adjusting the remaining amortization and mortgage balance.
๐ฃWith a mortgage switch, the only things that change are your term and interest rate.
๐This is ideal for when you want to take advantage of a competitive offer (or are just not happy with your current lender) but are not interested in accessing any additional monies or changing your remaining amortization.
๐ฆIn most cases, the new lender will cover the cost of legal fees….which could save you thousands.
๐ฉ๐ฒ๐ฟ๐๐๐.
๐When you ๐ฟ๐ฒ๐ณ๐ถ๐ป๐ฎ๐ป๐ฐ๐ฒ, all the terms of your mortgage are reset. To put it simply, refinancing is when you take out a brand new mortgage to replace your current one.
โ๏ธWith a refinance, legal fees are applicable.
โ๏ธHowever, refinancing creates the opportunity to access equity in your home for purposes such as renovation, investment, debt consolidation, etc., while also allowing you to re-amortize to 25 or 30 years.
โ ๏ธThis consolidation of debt could also save you thousands and significantly increase monthly cash flow.
โ๏ธ๐ฆ๐ผ ๐๐ต๐ถ๐ฐ๐ต ๐ถ๐ ๐ฏ๐ฒ๐๐๐ฒ๐ฟ?
BOTH & NEITHER.
๐จThat’s like asking if a hammer is better than a wrench – it depends what you are trying to accomplish.
๐Both have their benefits when used appropriately.
๐ชUnderstanding your circumstances, goals, and priorities are essential components in determining which option is best for you.
๐ When deciding whether to renew, switch, or refinance, it’s imperative to ensure all factors are considered.
๐This is why making mortgage decisions on rate alone is a fools strategy.
๐๐Mortgages are not apples for apples.
๐งThey are like wrenches and hammers – when used strategically, they are effective totals in achieving your real estate and financial goals.
๐ฒ ๐ธ๐๐๐๐๐๐๐๐? ๐บ๐๐๐ ๐๐ ๐ ๐ซ๐ด!
๐ฑ ๐๐๐ฅ๐ฉ๐ข๐ง๐ ๐ฒ๐จ๐ฎ ๐๐ฎ๐ข๐ฅ๐ ๐๐๐๐ฅ๐ญ๐ก ๐ญ๐ก๐ซ๐จ๐ฎ๐ ๐ก ๐๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐ ๐ก
๐๐ผโโ๏ธ@andreea.nour
๐โโ๏ธ@jessica.n.lone