Thinking of Refinancing? You need to know these 5 things!
Refinancing your mortgage is a great way to take utilize your home’s equity, to take advantage of lower interest rates, consolidate debt, and save money. But it can also cost you money if you do it in the wrong way or with the wrong lender! Before you refinance, it is always best to meet with an independent Mortgage Professional like myself, to make sure you are getting the right product for your current and future needs.
Before you choose to refinance your Mortgage, you should know these 5 things;
It can SAVE YOU MONEY!!!!
- • The primary reason many Canadians choose to refinance their homes is to access money while taking advantage of lower interest rates. This may be because mortgage interest rates are lower than personal loans and credit cards, they may have high interest debt they wish to consolidate, or maybe mortgage rates have dropped since they first took out their mortgage. Regardless of why, refinancing often allows people to save thousands of dollars per year.
You can choose to extend or lower your amortization period!
- • If you have had a change in your income, for better or worse, refinancing can help you change the amortization period of your mortgage. If you are making less money, you can lower you payments by extending your amortization or if you are earning more, you can pay off your mortgage faster by reducing it.
Refinancing may have penalty’s!
- • In order to refinance your mortgage, you may need break your current mortgage – which means you’re going to have to pay a penalty. I can help you determine whether the amount you can save through the refinance will be worth the financial penalty.
Credit Reports are more important than ever!
- • Whether you have good or poor credit is going to play an important role in your refinancing. If you do not have very good credit, then getting refinancing through a traditional lender might not be possible. The same is true if you have lost your job or if you are self-employed and can’t verify your income. Fortunately, there are reputable alternative lenders out there who specialize in these types of loans. I can guide you to the lenders that are the best fit for you.
Shopping around is key!
- • Even if you are able to get refinancing through your current lender, you will likely not get the best rate unless you shop around. Which is why working with a mortgage professional, like myself, is so important! I know who will be the best fit for you, and have direct contact to numerous lenders and thus will do the shopping for you. Whether we need traditional lenders, or alternative lenders who specialize in helping those with poor credit or the self-employed borrowers, I have the right connection to get the deal done.
If you require more information, or want to get started, contact me any time!