MY TORONTO by SHAWN VENASSE - Sales Representative

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Three reasons to refinance a home include lowering the cost of housing, shortening the term of the mortgage to pay it off sooner or to using the equity to accomplish another purpose. Replacing the mortgage at a lower interest rate, which is entirely possible in today's market, would reduce the payment.   On the other hand, shortening the term of the mortgage could make the payments increase but would allow the home to be paid for sooner.   In either case, the equity would not be reduced unless the refinancing costs were rolled into the new mortgage. Refinancing the home to take money out would increase the mortgage on the property and lower an owner's equity; careful consideration should be made before doing so. Mortgage rates are considerably lower than credit card rates and usually lower than short term borrowing like student loans or car loans.   For that reason, homeowners will sometimes refinance to payoff higher cost debt. Some people refinance for more than their