Mortgage Refinance Brampton
If you are a homeowner in Brampton and you are looking for ways to save money or perhaps even access some cash, then one option to consider is something called a mortgage refinance. In this article, we will discuss what this means and why it is such a popular finance strategy for Brampton home owners.
What is a mortgage refinance?
A mortgage refinance is when you break your first mortgage and get a new one – usually at a lower interest rate than the original. When you refinance, you have the option to simply replace your existing mortgage, or you can both replace your existing mortgage AND borrow money from your home equity.
The amount of money that you borrow, gets added to your mortgage total, so your mortgage will be higher, but you’ll have the cash that you need to do with as you wish.
Because you will be breaking your first mortgage, there will be a financial penalty to pay, but depending on how close you are to your renewal date, and how much you are able to save on interest, refinancing your mortgage can still save you quite a bit of money overall.
Why should you choose a mortgage refinance in Brampton?
There are many reasons why Brampton homeowners might choose to refinance their mortgages. Some of the most common reasons include the following:
- To get a lower interest rate – if interest rates have dropped since you got your current mortgage, it may be time to refinance. Even a small difference in percentage can end of saving you thousands over your amortization period.
- You qualify for a better mortgage – Perhaps when you purchased your home, you had to get a bad credit mortgage, but since that time you have been working hard to improve your credit score. If you now qualify for a mortgage with an A or B lender, refinancing can help you to upgrade your mortgage early and save on interest.
- You want to consolidate your debt – As mentioned, when you refinance your mortgage, you have the opportunity to borrow money from your home equity. Most lenders will allow you to borrow up to 80%. If you have credit card balances or other high interest debt, mortgage refinancing can help you pay off your debt more quickly by consolidating it into one convenient and low interest payment.
- To finance a purchase or investment – Additionally, if you choose to borrow from your home equity when you refinance your mortgage, you can use the additional cash to finance a purchase or investment. Some common uses that Brampton homeowners put this money toward include home renovations, funding tuition for their children, and investing in their business.
How to get the best rates for mortgage refinances?
If you want to refinance your mortgage, it is important that you get the best interest rate that you can. And the best way to do this is to work with a professional mortgage broker. A mortgage broker works with dozens of lenders, so they can shop around on your behalf to make sure that you get the best rate the is available to you.
Even if you prefer to refinance with your current lender, your mortgage broker can help you out there as well and potentially negotiate a better price for you than you would be able to get on your own.
How to get a mortgage refinance even with bad credit.
If you have bad credit, you will not be able to work with a traditional lender such as a bank or credit union to get your mortgage refinance. But this doesn’t have to mean that refinancing is off the table for you.
Talk to your mortgage broker about refinancing with an alternative or private lender. Your mortgage broker works with many different types of lenders and some of those lenders specialize in bad credit loans. Your broker can match you with an appropriate lender who can help you to refinance your mortgage.
Advantages of using a mortgage broker for a mortgage refinance.
If you do decide that you want to refinance your mortgage, it is always best that you work with a mortgage broker rather than trying to do it on your own. There are several advantages to working with a professional mortgage broker including the following:
- A mortgage broker will help you decided if refinancing is the best option for you.
- A mortgage broker will help you get the best rate.
- You will have more lenders to choose from.
- They will guide you through the process.
Although there are many benefits to refinancing, it is not the right decision for everyone. Depending on your individual circumstances, it may be the right choice or there may be another mortgage strategy that is better suited for you such as second mortgage or home equity line of credit. Your mortgage broker will advise you on this.
If you do decide that mortgage refinancing is right for you, your mortgage broker will compare lenders and rates on your behalf in order to get you the best interest rate for your situation.
Mortgage brokers work with a wide variety of lenders with various specializations included bad credit, self-employed, and others. They even have access to lenders that you would not be able to access on your own because they only work through mortgage brokers. Your mortgage broker has the expertise and experience to match you with the best lender for you. And since they know the industry, they will also keep you away from the bad lenders.
Refinancing your mortgage might feel complicated or even scary at times. But your mortgage broker will be there to guide you through the process, ensure that all of your documents are in order and to answer any questions you may have.
Contact us today!
If you are a homeowner in Brampton and you are considering refinancing your mortgage, we can help. Contact us today to speak with one of our brokers and arrange for a consultation.