Mortgage Home Refinancing
Home refinancing is a great way to make your mortgage work for you
1. If you want to take advantage of low interest rates
Understand the numbers. Sometimes breaking your contract for a lower interest rates can help you to preserve money over time, based on the fine and the size of your outstanding mortgage
2. To have access to equity cash of your home
Refinancing can give you access up to 80% of your home value less any outstanding mortgages
The ways to approach this program consist of breaking your mortgage, agree to a line of credit or blending and extending your mortgage with your current lender.
3. To consolidate your debt
If you have adequate assets in your home, you should be able to pay-out high interest debt through a refinancing: to consolidate all of the debt such as a car loan, a line of credit, or credit card debt
There are some choices available to you when contemplating a refinance which include: breaking your mortgage contract early, obtaining a home equity line of credit or blending and extending your mortgage with your present lender.
1. If you quitting your existing mortgage contract early
In this situation you cancel your existing mortgage and take on a brand new one with any lender.
2. Create a home equity line of credit
A home equity line of credit gives you admission to the equity in your home.
And you are liable for interest payments each month on the outstanding balance
3. Mix and extend your existing mortgage rates
A “blended rate” is a “mix” of your current mortgage rate plus any additional money you borrow at present market rates. Usually, blended rates are virtually always higher than the most competitive mortgage rates on the market
Costs of refinancing your mortgage
The cost of refinancing of your mortgage based on the approach you use to access equity or lower your interest rates. No matter which action you take there is always legal costs as a lawyer must change the financing on title.
And of course, if you are breaking your mortgage in the midpoint of your term to access equity or lower your interest rate your lender will charge you a prepayment penalty
Whether you’re having trouble keeping up with your mortgage payments or are simply looking to reduce your monthly expenses, it pays to look into home refinancing.