Mortgage Refinancing NiagaraMortgage refinancing refers to replacing your existing mortgage with a new one. Refinancing can help a homeowner reduce the “term” of their mortgage, lower interest rates, save on monthly expenses, and access home equity for cash. While it has benefits, refinancing does come with costs and can be risky. It’s important to be sure that refinancing is a good option for you, so we’ve got some information to help you out.
How do I get started on refinancing? While the terms of mortgages vary, most banks and lenders will require you to uphold your original mortgage for at least a year. Before you can refinance, get in touch with your lender and review the details and restrictions of your mortgage agreement. After, you can decide if you want to refinance with your current lender or go somewhere else. Refinancing with your current lender is usually simpler because they’ll offer you a competitive price and waive the need for a new appraisal or certain paperwork. But it's still important to shop around to ensure you're getting the best deal. If you decide to change lenders, working with me will help you get the best deal and ensure that refinancing is the right option for your particular situation. 
|
START YOUR APPLICATION & receive a gift up to $300 off closing costs |
What are the Benefits of Refinancing?
The primary benefit of refinancing is lowering the interest rate on your mortgage loan. If you’re able to reduce your interest rate by 1% or 2%, then refinancing is a good idea. Reducing the interest rate on your mortgage can significantly lower your monthly payments and help you save money. It can also boost the rate at which your home equity builds, which sets you up for a good payout in the future.
If interest rates fall, refinancing is a good way of changing to a loan with a shorter term. The added benefit to this is that your monthly payments won’t be significantly affected. For example, on a $100,000 house with a 30-year fixed-rate mortgage, refinancing from 9% to 5.5% would reduce the term by half with only a ten-dollar change to the monthly payments. You’ll need to do the math to see if refinancing would be as beneficial for you.
Refinancing can be a good way to tap into your home’s equity. Accessing home equity is a way that many people obtain funds to cover significant expenses or consolidate debt. Refinancing for equity is a good option if the interest rate on a refinanced mortgage is less than that of funds you would borrow elsewhere. If you want to refinance for equity, you’ll need to look into getting a home equity line of credit.
If interest rates fall, refinancing is a good way of changing to a loan with a shorter term. The added benefit to this is that your monthly payments won’t be significantly affected. For example, on a $100,000 house with a 30-year fixed-rate mortgage, refinancing from 9% to 5.5% would reduce the term by half with only a ten-dollar change to the monthly payments. You’ll need to do the math to see if refinancing would be as beneficial for you.
Refinancing can be a good way to tap into your home’s equity. Accessing home equity is a way that many people obtain funds to cover significant expenses or consolidate debt. Refinancing for equity is a good option if the interest rate on a refinanced mortgage is less than that of funds you would borrow elsewhere. If you want to refinance for equity, you’ll need to look into getting a home equity line of credit.
What are the Risks of Refinancing?
There are several fees to be aware of prior to refinancing your mortgage. These include appraisal and application fees, as well as costs for an attorney. An attorney is required as part of the closing process for the new mortgage. You should also consider bank fees. To reduce or avoid bank fees, spend time looking for free or low-fee refinancing.
An important risk to consider is the possibility of penalties that may be incurred from paying off your current mortgage with a line of home equity credit. Mortgage agreements usually support the original lender in charging fees for refinancing. These fees can be very expensive, so make sure that refinancing your mortgage would cover this and benefit you in the long run.
An important risk to consider is the possibility of penalties that may be incurred from paying off your current mortgage with a line of home equity credit. Mortgage agreements usually support the original lender in charging fees for refinancing. These fees can be very expensive, so make sure that refinancing your mortgage would cover this and benefit you in the long run.
Refinancing your mortgage can be a great way to reduce your monthly payments, access home equity for debt consolidation or home renovations, and shorten the term of your loan. When you meet with me, we will examine your finances, consider how long you plan to stay in your home, and see if refinancing would help you save any money. Keep in mind that refinancing can have significant costs, so only go that route if you’re confident that you can recoup those expenses with the money you’d save.
Just call me at 289-272-5335 and I’ll tell you if refinancing is right for you!
Just call me at 289-272-5335 and I’ll tell you if refinancing is right for you!