How A Blended Mortgage Works

If you have a fixed-rate closed mortgage, you may consider a blended mortgage instead of breaking your contract to benefit from lower interest rates. A blended mortgage combines your current rate with a new one, offering a middle ground. It can help you access equity or lower your interest rate without incurring prepayment penalties. By blending rates, you can reset your mortgage term and potentially save money over time. Not all lenders offer blended mortgages, so it's essential to check with your lender for availability and terms.