Refinancing your mortgage is a fantastic option if you are looking to take advantage of the lower interest rates, tap into the equity of your house, or if you want to extend your amortization. At Sure Loan For You, our expert team is qualified to work with borrowers anywhere in Canada to help to identify the right mortgage refinancing option based on their current financial situation.

There are a wide variety of reasons one might consider refinancing your mortgage. The most popular one is taking the built-up equity out of your house to consolidate debt, fund home improvements, cash out and much more.

If you’re considering mortgage refinancing but not sure whether it is a necessary or feasible decision, then here are few reasons to consider refinancing your mortgage.

1. Able to access the built-up equity in your home

In a healthy housing market, the built-up equity in your house goes up when you pay off a portion of your mortgage. If you choose to access some of the equity, a useful way of doing so is refinancing.

2. Debt Consolidation

Ideally, money borrowed in a mortgage has far better interest rates when compared to other forms of debt, such as loans or credit cards. An important reason to refinance your mortgage is to utilize some of the additional equity in your property to borrow more funds in a new mortgage, which can further be used to pay off higher debts. Combining all your high-interest payments into one single easy-to-make payment will help you keep track of them.

3. Pay off home improvements

Accessing the built-up equity through mortgage refinancing is a great way to pay off home improvements when compared to other high-interest forms of financing like a personal loan, second mortgage, HELOC etc. Moreover, refinancing for home renovations increase the property’s appraisal value which in turn increases your equity and reducing your loan-to-value (LTV) ratio.

Based on your situation, how to refinance your mortgage?

1. Determine if refinancing a sound decision for your situation

First, we need to compare the refinancing costs against the benefits of getting it. Refinancing could be a considerable option if your goal is to reduce the loan term, so you can pay it off faster. Of course, reducing your loan term will most likely to increase your monthly payments, because you will be expected to pay the same loan amount in a shorter period of time. Considering, this would be an entire financial sense-based decision for your situation.

2. Take a look at different rates

Once you have decided to refinance your mortgage, you can start by comparing different rates to identify the right one based on your current situation.

3. Apply for a new mortgage

Once you have decided on what you’re looking for, you will need to apply for a new loan. The process is similar to applying for your primary mortgage, where the lender will assess your finances by looking at your employment history, income and credit score. Furthermore, you will also need to undertake a home appraisal to identify the exact value of your property in the current market. This is done to ensure that you as a borrower can keep up with mortgage payments if at some point the interest rates increase.

Bottom-line

Mortgage refinancing involves evaluating your options based on your financial situation and deciding whether the pros outweigh the cons. At Sure Loan For You, based on your current mortgage terms and lender requirements, including the time left on your current mortgage, we will consider every situation and determine the best possible solution. For further information on mortgage refinancing, or if you need help negotiating terms and rates with your existing lender, we can help.

Please do not hesitate to give our team a call today.

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