Is It Time To Refinance?
If you’ve been wondering when’s the right time to refinance your mortgage, now would be the best time! With mortgage rates at an all-time low, you can refinance your current mortgage to lock in these low rates. When you refinance your mortgage after a few years of payment, you can also access your home equity for money to pay off debts, take care of renovations or investments.
Refinancing even allows you to consolidate debts into one payment. That way, you can finish or start the renovation you wanted to do for years or take advantage of investment opportunities without worrying about how to finance it.
As you can see, there are several benefits to refinancing. But, what is refinancing and what does it entail?
Mortgage refinancing is the process of paying off your existing mortgage with a new mortgage. You can acquire a new mortgage from your current lender or a different lender. It can be availed of at the end of your mortgage term or even before that. Just remember, for the latter, you will be charged a penalty. If you feel that the benefits of a refinance outweigh the penalty fees, take advantage of this option.
Anyone with debt other than the mortgage can benefit from refinancing. When you refinance, you can consolidate your debt payments into one. Besides this, anyone interested in improving their home or financial position can also take advantage of refinancing. It allows them to access funds for these projects and make the most of market conditions even if they do not have their own money.
To refinance a mortgage, there will be legal fees of approximately $900 to $1200 and an appraisal fee of approximately $350. There may even be penalties on the mortgage if you break it mid-term. If you’d like to know more about refinancing costs and procedures, give me a call at (519)854-7025. Based on your financial situation and requirements, I will help you determine if a refinance is what you need or if you require another solution.
Usually, an alternative to a refinance is a home equity loan. The rates are much higher for this option, and the amortization much lower, so the payment will be higher and could affect your cash flow or even how much you can get approved for.
To learn more about the best mortgage product for your needs, reach out to me. I am Dan Balch, a leading mortgage broker offering the tailored mortgage solutions across London, Woodstock, ON. I am known as Dan, the mortgage man among my clients and community. I have been helping people all my life and specifically helping them achieve their goals of homeownership for twenty-one years. I treat all of my clients with respect and offer them the same high standards whether they are first-time homebuyers or this is their fifth home.