Are you interested in lowering your monthly mortgage payments? Do you have unexpected medical bills you need to pay? Or perhaps there are some renovations you would like to do in your home?
If so, have you considered refinancing your existing mortgage to help you offset some of these additional expenses?
While a mortgage refinance is not something to jump into without all of the facts, there are many reasons for homeowners to consider refinancing their existing mortgage, including the ones mentioned above.
When you refinance your mortgage, you are basically replacing your current mortgage with a new one. This new mortgage will have either a different interest rate, term or loan amount – or possibly all three. If you want to lower your monthly mortgage payments, you may try refinancing to a lower interest rate or a longer term. Some homeowners manage to save up enough to pay off a portion of their loan, giving them the option of refinancing their mortgage and obtaining a new mortgage with a lower loan amount. If you want to access some of the equity that you have built up in your home, you may try to refinance to a larger loan amount.
While taking advantage of lowered interest rates is the most common reason to refinance a mortgage, that is clearly not the only reason. In fact, there are some cases where you may be better off adjusting other aspects of your mortgage contract instead of negotiating for a lower interest rate.
Because you are essentially obtaining a new mortgage, the process of refinancing your mortgage is just as involved as it was with your original mortgage. You will still be required to fill out an application and your qualifications and eligibility will still be evaluated. There may also be additional closing costs associated with your refinance, similarly to when you closed on your original mortgage.
Refinancing your mortgage can be a complicated process, which is why it is so important to work with an experienced mortgage professional. As a trusted Abbotsford mortgage broker, I am here to make sure that refinancing your mortgage is indeed the best option for your situation and, if it is, to make sure you are getting the best financing possible!
If you are thinking about refinancing your mortgage, give me a call today!