Mortgage Refinancing in London, Woodstock ON
Dan Balch, mortgage broker provides easy mortgage refinancing options to clients across London, Woodstock, St. Thomas.
A mortgage refinance can occur with your current mortgage lender or with another mortgage lender. The main reason for mortgage refinancing is usually changing the mortgage amount by taking out equity for many reasons. Some of the top reasons are:
- Pay off those high interest credit cards and lines of credit
- Do that renovation you have been dreaming about for years
- Pay for children’s education or wedding
- Increase your cash flow by lowering your rate and amortization
- Get a better interest rate
The biggest difference between the mortgage refinance and the transfer other than the mortgage amount changing is you have to pay all the associated costs with a mortgage refinance. That means lawyers’ fees, appraisals and maybe lender fees. There are services that will do the refinance fairly economical, but you are probably looking at least $1,000 for the refinance.
So, to determine whether it is a great idea, see how much cash flow will be freed up each month, and how much you can obtain of your equity to do what you want to do. The current rules will only allow us to refinance up to 80% of what your home is worth. That may be the determining factor if you can even do a refinance.
Once you figure out what equity you can draw out, then you determine what month savings you can have and determine whether paying the money is worth the expense. Sometimes what is written on the paper makes no sense to do, but lowering your payments to get you through a difficult time does make sense. Sometimes it is not about the money but the peace of mind this could provide you with.
Contact London’s mortgage broker, Dan Balch to help you determine your best course of action! >>
What is the difference between transfer and mortgage refinance?
A transfer is the movement of your mortgage from one company to another. Don’t like your current company, not treating you very well, not offering you the best mortgage rates, or best products? You can transfer your mortgage to another company who will pick up most of the charges to do so. There are even some companies that will pay most of your discharge fee, which is always present when you leave your mortgage company. You can even transfer midterm if you pay your penalty to break your current mortgage. Most companies will allow you to roll that penalty up to $1,500 - $2,500 into your mortgage. Unlike the mortgage refinance, the rest of the terms must remain the same.
A mortgage refinance can occur with your current mortgage lender or with another mortgage lender. The main reason for mortgage refinancing is usually changing the mortgage amount by taking out equity for many reasons. Some of the top reasons are:
- Pay off those high interest credit cards and lines of credit
- Do that renovation you have been dreaming about for years
- Pay for children’s education or wedding
- Increase your cash flow by lowering your rate and amortization
- Get a better interest rate