- Consolidate Debt
Credit cards charge a higher interest rate than your mortgage lender does. It may make sense for you to pay off your loans using the equity from your home.
- Unlock Home Equity
Lots of people use a Home Equity Line of Credit (HELOC) to finance renovations, go on vacation, or pay for tuition. What you do with it is up to you!
- Get a Lower Interest Rate
Have you ever experienced rate envy? When you got your rate it was considered low, but now there are others getting even lower interest rates! It may make sense for you to break your mortgage and refinance into one that has a lower rate.
How Do I Refinance?
- Break Your Mortgage
This method costs a bit of money up front, but don’t let that scare you away. This will save you more money in the long run! A mortgage agent will be able to let you know if this is the right method of refinancing for you. Learn more about breaking your mortgage here.
- Add a Home Equity Line of Credit (HELOC)
A HELOC is secured by the equity in your home. Your lender sets the “ceiling amount” that you can borrow, but within those parameters you can withdraw any amount at any time during the draw period. There are a few risks associate with acquiring a HELOC, so make sure you check with your mortgage agent to see if it’s a good fit for your situation. To read more about HELOC’s click here.
- Blended Mortgages
Did you know that with some lenders you can combine your existing mortgage rate with the rate from a new mortgage? This combined rate might not be the most competitive rate on the market, but it will help lower your interest rate without having to pay a penalty.
Steps to Refinancing:
- Decide why you want to refinance your mortgage. If it’s to access equity, decide how much you’d like to access. (Maximum amount is 80% of your home’s appraised value.)
- Order an appraisal (a mortgage agent can do this for you) to see how much equity is available. Your mortgage agent will also go through refinancing strategies with you, based on your financial information.
- Submit necessary paperwork for approval:
- Credit Score
- Mortgage Details
- After it’s approved, we will send the approval to you for signing.
- Once your lawyer receives the necessary documents, they will schedule a time for you to come in and sign. They will let you know if there is anything else you need to bring.