Mortgage Refinance Vaughan
With mortgage rates being incredibly favourable but expected to go up within the next few years, many homeowners in Vaughan are deciding to get a refinance. If you are reading this, perhaps you are wondering if this is the right decision for you as well.
What is a mortgage refinance?
Simply put, refinancing your mortgage means to break your current mortgage and get a new one. You may get a mortgage for the same amount if you are doing this just to lower your interest rate, or you may get a mortgage for a higher amount if you wish to access some of the equity in your home (so whatever amount of mortgage you get over and above the amount needed to pay off your first mortgage, you would get in cash.)
When you refinance your mortgage, there is usually a financial penalty that you will have to pay for breaking your current mortgage. But for many homeowners in Vaughan, is more than offset by the savings that they realize in interest.
Why should you choose a mortgage refinance in Vaughan?
There are many reasons why you might choose to refinance your mortgage. One of the most obvious reasons it to save money on interest. If you got your current mortgage when rates were higher – of if you could only qualify for a higher rate when you got your current mortgage but are now in a position to qualify for a lower rate – then even a apparently small savings in interest through refinancing can save you thousands of dollars over the lifetime of your mortgage.
Another popular reason why many in Vaughan choose to refinance their mortgage is so that they can access some of the equity in their home. By getting a larger mortgage than you actually need to cover the cost of your home, you can get a cash payout that can be used to consolidate debt, pay for a home renovation, or for any other purpose you choose.
If you refinance to access equity in your home, your mortgage payments could actually end up being a little higher, but you will still save significantly more money than you would if you borrowed using most other types of loans.
How to get the best rates for mortgage refinances
Getting the best possible rates on mortgage refinances is as simple as setting up an appointment with your mortgage broker. Mortgage brokers work with dozens of different lenders so they are able to shop around on your behalf to ensure that you get the best possible rate for your situation.
In fact, mortgage brokers even work with some lenders that you would not be able to access at all on your own.
How to get a mortgage refinance even with bad credit
Some people think that if they have bad credit that they won’t be able to refinance their mortgage. But this is not necessarily the case.
As stated, mortgage brokers work with many different lenders, and some of these lenders specialize in working with people who have poor credit.
If your credit isn’t perfect, you may be pleasantly surprised to find out that it may still be possible to get a mortgage refinance.
There are lenders in the mortgage industry that specialize in helping those with poor credit. In fact, getting a mortgage refinance may be a great move for you if you are trying to repair your credit.
This is because you can use a mortgage refinance in order to consolidate your debt which means you’ll have less interest to pay and you’ll be able to pay off your principal at a faster rate. But even if you don’t have a lot of debt to pay off, refinancing may even be helping to help you manage your finances better by allowing you to lower your monthly payments.
Advantages of a using a mortgage broker for mortgage refinance
If you are thinking of refinancing your mortgage, there are many advantages of working with a mortgage broker in order to do so. Some of the advantages are:
- A mortgage broker can help you determine if refinancing your mortgage is really the right decision for you. (In some cases, another option such as getting a second mortgage might be better).
- A mortgage broker will shop around on your behalf to ensure you get the best possible interest rate on your mortgage refinance.
- If necessary, a mortgage broker can help you find a specialty lender – such as someone who works specifically for self-employed people or with people that have bad credit.
- A mortgage broker can help you avoid irreputable lenders because they know the industry so well.
- A mortgage broker can help you will all of the necessary paperwork and they can answer your questions so you can feel confident you are making the right choice.
Contact us today!
If you are a homeowner in Vaughan and you think that refinancing your mortgage might be the right decision for you,we can help. Contact us today to speak with one of our brokers.