Business owners are one part of the population that could certainly benefit the most from refinancing their mortgage. Just as there are right times to look for funding from venture capital firms though, so too is there a right time to look for refinancing options. However, many business owners do not know when the best time to refinance. If you are one of those wondering “when should I refinance?” keep reading below to find out.
If You Have Good Credit
If your credit score has recently changed for the better, now may be a great time to refinance your mortgage. Previously, your poor credit rating had a negative impact on your mortgage rates. This means you may be paying more than you have to. Having a good credit score improves the mortgages rates you have the chance to refinance with. This can obviously greatly lower your monthly payments and the duration of your mortgage, which will help you to put more of your own money into growing your business. This is one time when you may want to refinance your mortgage.
If You Plan On Staying
If you plan on staying in your current home for seven years or more, you should definitely consider refinancing your mortgage. The longer you plan to stay in your home, the more beneficial it is to consider refinancing your mortgage. However, if you do not plan to stay long in your current home, the closing costs will mitigate any costs savings from refinancing. This is similar to the decision you made regarding whether or not to accept credit cards at your business. In that case, it is not a good time for you to refinance a mortgage.
If It Shortens Loan Terms
If refinancing will shorten loan terms for your mortgage, you should do it. Unless shortened repayment terms will greatly increase your monthly payment, you should definitely do it. This way, you will pay back your mortgage much sooner. This will have an incredibly positive impact on your bottom line in the coming years. It will also give you leverage for future business loans and other financing, should you need it. This is definitely one time to refinance, as long as your monthly payments do not increase too much.
If You Want Lower Monthly Payments
If you want to benefit from lower monthly payments, you should definitely consider refinancing a mortgage. As long as you keep the same mortgage term length that you currently have, you could greatly lower your mortgage payments each month. This will free up money for business investments or to help solve cash flow problems for your business. Regardless of what you choose to use the extra money for, refinancing your mortgage will help you to lower your monthly mortgage payments. Who would not want that?
If You Are Trying To Consolidate Debt
Many people refinance a mortgage in order to consolidate debts. If you want to consolidate your debts, whether Canadian debt or elsewhere, you should definitely consider refinancing. While some financial experts warn that consolidation is not all it is cracked up to be, this is not the case for many individuals. Loan consolidation can help to make your money matters a bit more manageable. That is one perk that is priceless. For simplified monthly payments from debt consolidation, you may want to consider refinancing.
If you are a business owner, you may want to refinance your mortgage. Refinancing provides a ton of benefits to the average homeowner. However, it provides even more benefits to business owners like you who need to account for every single dollar every single month. When should you refinance? If you want to benefit from lower monthly payments, shorter mortgage terms, consolidated debts or the perks of a lower credit score, consider refinancing. Your bank account is sure to thank you for it.
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