Mortgage Refinance Kitchener
If you are a homeowner in Kitchener who is looking to save money, pay off your home faster, or perhaps even get out of debt completely, then one strategy that deserves your attention is something called a mortgage refinance.
When you refinance your mortgage, it means that you are breaking your current mortgage in order to get another one. Your new mortgage will typically have a lower interest rate and you can even use a mortgage refinance in order to access some of the equity in your home.
Since refinancing your mortgage requires you to break your current one, this strategy usually also means that you will have to pay a financial penalty – so the strategy is not right for everyone. But even with the financial penalty, you can end up saving thousands of dollars by refinancing your mortgage under the right conditions.
Why should you choose a mortgage refinance in Kitchener?
There are various reasons why someone in Kitchener might choose to refinance their mortgage. Interest rates on mortgages have come down considerably over the last few years, so if you can save some money on the interest you pay, it will allow you to pay down your principal more quickly – which can save you a substantial amount of money over the amortization period of your mortgage.
Or perhaps when you got your current mortgage, you didn’t have the best credit and therefore couldn’t qualify for the best rate. If your credit has improved since then, it might make sense to refinance.
Another reason why many in Kitchener choose to refinance their mortgages is so that they many access some of their home equity in cash. And since home values in Kitchener keep going up, you may have more home equity than you think. Typically, lenders will allow you to access up to 80% of your home equity when you refinance your mortgage.
When you refinance your mortgage to access equity, your new mortgage will be for the amount of your current mortgage plus however much equity you decide to access. You will then receive a lump sum payment out of your home equity that you may use for any purpose you choose. Common reasons for accessing home equity including financing renovations and consolidating debt. By consolidating your higher interest debt through a mortgage refinance, you can save hundreds or even thousands of dollars on your overall debt payments.
How to get the best rates for mortgage refinances
Just like when you got your first mortgage, there are different lenders who offer different interest rates on mortgage refinances. The rate that you will be able to qualify for will depend on several factors including your credit score, however if you want to find the best rate possible for your situation , you should contact your mortgage broker.
Mortgage brokers work with dozens of lenders, and they know the industry better than anyone. They can shop around on your behalf, comparing rates to make sure that you get the best possible deal.
How to get a mortgage refinance even with bad credit
If your credit is less than perfect, you may be wondering whether it is even possible for you to refinance your mortgage. The good news is that in most cases, the answer is yes.
But this is yet another case, where it is very important that you work with a professional mortgage broker. There are lenders out there that specialize in working with people who have bad credit, and your mortgage broker can help to connect you with one of these lenders.
Refinancing your mortgage can be a good strategy to help you rebuild your credit – particularly if one of the reasons for your refinance is to consolidate your debt. By consolidating your debt and then continuing to make the regular payments on time, you can begin to repair your credit.
Advantages of using a mortgage broker tor mortgage refinance
While it is not strictly necessary to work with a mortgage broker to refinance your mortgage, there are a number of reasons why you should consider doing so. These reasons include:
- A mortgage broker can help you decide if refinancing your mortgage is really the best choice for you. (In some cases, other options such as getting a second mortgage may be more beneficial).
- A mortgage broker can help you find the best interest rate on your mortgage refinance for your situation – even if you don’t have perfect credit.
- A mortgage broker will guide you on what financial information that you will need to submit to the lender and they will help you with the application itself.
- A mortgage broker will answer any of your questions that you might have about refinancing your mortgage.
Contact us today!
Are you a homeowner in Kitchener and considering refinancing your mortgage? If so, contact us today to speak to one of our brokers.