Have you taken a look at your mortgage recently? What has it been doing for you? If you’re hoping your mortgage can do more for you, now might be a good time to talk to a mortgage broker about refinancing. In this blog post, we share a quick and easy guide on mortgage refinancing so you can know your options!
What is Mortgage Refinancing?
Mortgage refinancing is the process of replacing your current mortgage with a new one. This includes a new term or interest rate and is usually done to improve the conditions of your mortgage.
Why Refinance Your Mortgage?
There are plenty of reasons why you might choose to refinance your mortgage. For instance, you may want to increase the amortization period to reduce your monthly payments. You can also use it to access your home’s equity to help finance large projects or purchases, such as a renovation or a car.
When is the Best Time for Mortgage Refinancing?
The right time to refinance a mortgage is different for everyone, says Mortgage Design Group Inc. broker Candice DeMaere. With current mortgage rates at a historical low, this is a good opportunity to lock in a mortgage at a lower rate.
“We’ve also seen house prices increase by about 8% over the past few months,” says Candice. “Other opportunities would be taking out some cash or equity to invest in the markets.” This doesn’t necessarily mean that you are investing in stocks or another property. You could use a mortgage refinance to get the funds needed in order to renovate or upgrade your home and take advantage of a strong real estate market.
According to Candice, the best time for a refinance can also depend on an individual person. “What are you looking to refinance for?” she says. Some people may find a refinance beneficial if they’re looking to pay down some debt or access more cash flow.
What to Know About Mortgage Refinancing?
“The main rule is that the government only allows us to leverage a house up to 80%,” says Candice, explaining mortgage refinancing in one of Mortgage Design Group Inc.’s free webinars. “That means if your house is worth approximately $250,000, your new mortgage could be as much as $200,000.”
If you’re refinancing a mortgage during a term, it’s also important to be aware of some of the costs involved. An appraisal and payout penalties are possible, but an experienced broker can explain potential additional costs in more detail. A great broker can also advise you on the best products that may help you mitigate some of these fees!
How to Start the Mortgage Refinancing Process?
Looking to start the refinancing process or curious about your options? Mortgage Design Group Inc. takes pride in providing our world-class service to everyone from the comfort of their own home. Above all else, we’re happy to share our experience and knowledge to help you. Our goal is to always help our clients save money and ensure they have the best mortgage for their needs. Ready to get started? Meet the team or contact us via our website today!