Mortgage Refinance Burlington
Homeowners in Burlington have a variety of strategies available to them that can help them save money, pay off their mortgage faster, and get out of consumer debt. One of the most powerful strategies is to refinance your mortgage.
When you refinance your mortgage, it means that you are breaking your current mortgage and getting a new one. To do this, you will usually have to pay a financial penalty, however when this is done under the right circumstances, you can still end up saving thousands of dollars over the amortization period of your mortgage.
Why should you choose a mortgage refinance in Burlington?
People in Burlington choose to refinance their mortgages for a variety of reasons. The main reason however, to refinance a mortgage is to help you save money on interest. Even a small reduction in your interest rate can help you reduce your monthly payments or pay down your mortgage more quickly.
Since interest rates have dropped in recent years, it is worth having a chat with your mortgage broker to see how much money you might be able to save on a mortgage refinance.
You may be able to save even more on interest if you did not have the best credit (and therefore couldn’t get the best interest rates), when you got your current mortgage. If you have been repairing your credit, you may now qualify for a better rate so it may be a smart move for you to refinance your mortgage.
In addition to saving money on interest, another primary reason why people in Burlington choose to refinance their mortgages is so that they may access the equity in their home. When you access home equity through a mortgage refinance, you get a larger mortgage than you currently have now – the amount of your current mortgage plus the amount of home equity that you choose to borrow (most lenders will allow you to borrow up to 80% of your home equity). The home equity that you borrow is given to you in a lump sum.
When you borrow from your home equity, you may do anything you like with the money however common reasons for borrowing include financing a home repair or renovation and consolidating higher interest consumer debt. When you borrow from your home equity in order to consolidate debt, you can lower your interest rate considerably which can help you to get out of debt much faster.
How to get the best rates for mortgage refinances
If you are looking to get the best possible interest rate on your mortgage refinance, your first step should be to contact a professional mortgage broker. Mortgage brokers know the industry and they have professional connections with dozens of lenders. This allows them to shop around on your behalf to make sure that you are getting the best rate you can qualify for.
Mortgage brokers even have access to lenders that only work through mortgage brokers, so you would not be able to access these lenders on your own.
How to get a mortgage refinance even with bad credit
If you have bad credit, you may worry that you won’t be able to get a mortgage refinance. The good news is that this is probably not true. There are many lenders who actually specialize in providing loans to people with damaged credit, and by working with your mortgage broker you can find a reputable bad
In fact, by refinancing your mortgage, it can even help you to repair your credit. This is because refinancing can help make your payments more manageable or – if you refinance in order to consolidate debt – it can help you to pay off your consumer debts more quickly.
Advantages of using a mortgage broker to refinance your mortgage
While it is possible for Burlington homeowners to refinance their mortgages directly with a lender, it usually makes much more sense to work with a mortgage broker. There are many advantages to working with a broker including:
- Discover whether a mortgage refinance is the right tool for you. (In some cases, other mortgage tools such as second mortgages may be more appropriate).
- Let your broker shop around on your behalf to make sure you are getting the best possible interest rate.
- Get help from your broker filling out the paperwork and gathering the necessary documents for the lender.
- Have someone in your corner who can answer all of your mortgage refinancing questions.
- Working with a mortgage broker is usually free!
Contact us today!
If you are a homeowner in Burlington and you think that refinancing your mortgage might be the right choice for you, we can help. Contact us today to set up an appointment with one of our mortgage brokers. We can answer any questions you may have as well as help you with the process.