Mortgage Refinance Milton

If you are a homeowner in Milton, you may have heard of a powerful mortgage tool/strategy called the mortgage refinance. Maybe this is something you are considering for yourself or perhaps someone has recommended this for you, but you are not quite sure what it is or how it works.

To refinance your mortgage simply means that you are breaking your current mortgage early and replacing it with a new one. In some cases, you may wish to replace your current mortgage with a new mortgage for the same amount – so if you still owe $300,000 on your home, you would just replace your current mortgage for another one for $300,000. In other cases however, you might want to use a mortgage refinance to tap into the equity in your home. So say for example you needed $50,000. You could replace your current $300,000 mortgage with one for $350,000 and receive the extra $50,000 in cash.

The amount of cash you can borrow with a mortgage refinance depends on how much equity you have in your home, but most lenders will allow you to borrow up to 80%.

Why should you choose a mortgage refinance in Milton?

There are various reasons why Milton homeowners choose to refinance their mortgages. One of the main reasons for doing so however is to get a lower interest rate. Even a small change in interest rates can make a big difference in how much you will pay over the amortization period of your mortgage (you can actually save thousands of dollars!)

So if interest rates were higher when you got your current mortgage – or perhaps you could only qualify for a higher rate because of poor credit but you can qualify for a better rate now – then refinancing your mortgage may make good financial sense.

The other main reason why some Milton homeowners choose to refinance their mortgages is to access the equity in their homes. As mentioned earlier, most lenders will allow you to borrow up to 80% of your home equity, so refinancing your mortgage could be a good way to borrow a large sum at a very low interest rate. Your home equity may be borrowed from for any number of reasons ranging from debt consolidation, to financing a home renovation, to getting the seed capital you need to start a business.

If your main reason for refinancing is to access your home equity, you should ask your mortgage broker to run some calculations for you to see whether mortgage refinancing or a second mortgage is the most cost-effective option for your circumstances.

How to get the best rates for mortgage refinances

Different lenders will offer different rates on mortgage refinancing, and the best rate that you can get will depend on a number of factors such as your credit rating. But to find the best rate for you, the first thing you should do is contact your mortgage broker.

Mortgage brokers work with many different lenders, and this allows them to shop around to help find you the best rate possible.

How to get a mortgage refinance even with bad credit

Some people think that if they have bad credit that they won’t be able to refinance their mortgage. But this is not necessarily the case.

As stated, mortgage brokers work with many different lenders, and some of these lenders specialize in working with people who have poor credit.

And refinancing your mortgage may even be a way to help you repair your credit. If you use your mortgage refinance for debt consolidation, it may help you to get out of debt more quickly. Or even if you don’t need to borrow from you home equity, a mortgage refinance could help you lower your monthly payments which could make handling your financing more manageable.

Don’t assume that because you have bad credit that you can’t get a mortgage refinance. Contact your mortgage broker and let them help you.

Advantages of using a mortgage broker for mortgage refinance

While it is possible to refinance your mortgage without the help of a mortgage broker, this is not advised. There are many advantages to working with a broker including:

  • Getting the right advice as to whether a mortgage refinance is the right choice for you (as opposed to other options like second mortgages).
  • Getting the best interest rates because mortgage brokers shop around on your behalf.
  • Being able to access lenders that you wouldn’t be able to access on your own.
  • Getting assistance with the paperwork/application.
  • Having a professional who can answer all of your questions about your mortgage refinance.
  • Working with a mortgage broker is free for most transactions!

Contact us today!

If you are a Milton homeowner and you are considering refinancing your mortgage, we can help. Contact us today to speak with one of our brokers.