Refinancing Your Mortgage
Mortgage refinance is when you get a new mortgage to replace the original mortgage. Generally a change in the balance owing or amortization.
What is the process of Mortgage Refinancing and How does it work?
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The process of refinancing is similar to the mortgage renewal process.
Starting with understanding your goal of mortgage refinancing. Then review the current best mortgage options available to see which is more suitable.
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You can borrow up to 80% of the appraised property value, this is may vary depending on other factors. The initial mortgage owing is subtracted, then the equity that is left can be taken out.
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Its common to refinance when initial mortgage may have been obtained when credit score needed some work and the credit score has improved. The better the credit score, the more access to different lender options.
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Sometimes people will refinance to switch to lenders because their income increased or credit score has improved. Better credit score means access to more available lenders.
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Equity taken out can be used for various purposes.
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Reasons to Refinance
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Debt Consolidation
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Lower mortgage payments
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Cash-Out Refinance
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Take equity out of home
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Change from variable rate to fixed rate mortgage
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Switching mortgage lenders
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Home renovations & much more~
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Refinancing Your Mortgage
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There are different ways to refinance a mortgage
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Getting a home equity line of credit
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You will get to access your home equity without needing to change your current mortgage. Interest only payments on the balance owing.
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At maturity (mortgage renewal date)
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No penalties when you refinance at maturity date​
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Second Mortgage
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Some lenders may allow second mortgages behind their first mortgage​
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Break your existing mortgage early
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Always check to see what penalties would be if youre to go this route​
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