For many people, getting into the holiday spirit means digging out all of your sparkly Christmas decorations, attending parties filled with food, drinks, friends and family and piling up stacks of gifts for loved ones under the tree. Sadly, after all that fun, there is a good chance you’ll come out on the other side with a holiday hangover in the form of debt.

If after taking a peek at your credit card statements in January leaves you feeling ill, there are ways to beat the holiday debt without too much pain. Develop a plan to bring down your debt and get back on track financially, so you can enjoy a prosperous new year.

The first step is to assess the damage and then contact an experienced Mortgage Professional who can look at refinancing your home so you can access your available equity (current home value less any mortgages). Refinancing your mortgage allows you to restructure your mortgage amount, term, interest rate and amortization which will enable you to pay off debt, invest or renovate your home. There will likely be some costs related to refinancing your mortgage which may include appraisal and legal fees though they usually aren’t as high as what you paid when you originally purchased the home. You can talk to your mortgage professional about paying some of those costs from your refinance funds at closing time.

The final step is deciding on which of the 3 ways you want to access your equity;

1) Restructure your first mortgage to accommodate the extra funds you want out of your home.

2) A second mortgage will allow you to leave your first mortgage details the same, but access equity by obtaining a 2nd mortgage behind your 1st one. Be careful though, as 2nd mortgages may come with higher rates and possibly fees.

3) Or, if you qualify, a home equity line of credit could be the solution you’re looking for. It can be registered behind your first mortgage and offers a variable interest rate, an open term and interest only payments.

A lot can change during the term of your mortgage, including income, assets and debts. Even if a refinance isn’t for you right now, it’s never a bad idea to give your mortgage a check-up to ensure it aligns with the financial goals you are trying to achieve. Don’t be afraid to explore how you can make your mortgage work to your benefit by partnering with an experienced mortgage professional on the perfect financing solution for your specific situation right now.

Still not sure what to do? Contact the MortgageGirlca and put her over 35 years of experience doing mortgages, to work for you. #benefitfromexperience Call: 780-433-8412 or email: info@mortgagegirl.ca . Follow her on Facebook (MortgageGirl.ca) Twitter (MortgageGirlca) or her blog (mortgagegirls.wordpress.com)


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