Refinance Mortgage: When Does it Make Sense?
The reason homeowners refinance mortgage is to gain favourable terms, which is possible. If you entered the market when interest rates were high, refinancing makes sense when rates drop. Some individuals squeak into homeownership with an average credit score. When the score improves, it makes sense to refinance because you are no longer a high risk. Here are some refinancing points to keep in mind.
Current Financial Situation
Refinancing a home requires an application. A lender looks it over and ensures that the current mortgage is in good standing. The application serves as a health check, too. We examine the loan’s current terms before we begin running potential scenarios. The goal is to ensure that refinancing provides a benefit.
If everything checks out on the application, you receive a notice of pre-approval. The pre-approval opens the door to a new mortgage, which will be an improvement on the current. Our team sits down with you to discuss options because there will be a few. Mortgages have evolved, which has opened homeownership to a wider applicant pool.
Make the Change
After exploring your refinance options with us, you receive time to think it over. Once you are ready to make the change, we prepare the new loan terms and information. Most homeowners refinance to save money. Consolidating current debt is another. A third group seeks an infusion of cash to fund a renovation or child’s education. In these cases and others, we are ready to help.
Refinance Mortgage Conclusion
If you want to explore your refinance mortgage options, contact our Mortgage House team and set up a time to talk. We will walk you through the process. In the meantime, our mortgage calculator calculates different results based on varying interest rates, repayment period, and outstanding home loan amount.