This article was originally published on RBC Discover & Learn and has been republished here with permission.
If you own a home, there’s a good chance its value has increased over the last few years. By refinancing your home, you may be able to use that value to receive cash in return.
If you have increased equity in your home, you may be able to get cash back for the difference between the current value of your home and your original mortgage amount (as long as you keep at least 20% of equity in your home). This cash difference can go a long way toward funding your goals.
Your mortgage offers a low-interest borrowing option, often making it a smart way to access a large sum of money.
Here’s how refinancing might make sense for you:
Not sure if you’ve built up the equity you need to make it worth refinancing? There are a few ways to assess the value of your home:
Refinancing your home can open up some great possibilities for you and your family. Considering all the factors — the value of your home today, the closing costs, how long you intend to keep your home, and the importance of the goals you are thinking of funding — can help you make your decision.
If refinancing looks like the right move for you, talk to an RBC Mortgage Specialist to get started today.
This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.
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