Replacing your existing mortgage with a new one that has different interest terms and rates is called mortgage refinancing. It is a clever way to make the most of your loan, but it is important that you work with an expert so that you make the best and most helpful decision for both the short and long term.
Why would I look for a mortgage refinance?
There are many reasons why you may choose to refinance. This may be if, for whatever reason, you can longer afford your existing repayments. Refinancing can assist you in handling this, but for this process to truly help you it is key to talk with a mortgage specialist. This is because by remortgaging you can potentially (and totally unnecessarily) increase your interest rate, thereby increasing your loan which is clearly detrimental. You may also wish to refinance your mortgage if you are in a good position with your credit history and income. Mortgage refinance rates may help you to obtain a lower interest rate than you had before.
Should I Refinance my Mortgage?
There are many advantages to a refinanced home loan. When utilized successfully you may be able to gain better mortgage rates and help yourself in the long run. You must be very careful in this process, so we highly recommend working with a licensed mortgage broker, such as ourselves, to ensure you are making a good financial decision. One of the primary advantages is to reduce your interest rate. Commonly over the years your credit score will increase and so you are now liable for better rates than when you first bought your home. With this improvement comes the potential to benefit from refinance mortgage rates.
How About Home Equity Loans?
Refinancing is also commonly used as a way for people to obtain money for large purchases such as cars, to pay off credit card debt or as a home improvement loan. This works by you utilizing some of the property you already own (through your past mortgage repayment). It is an extremely flexible type of loan that will typically have a lower interest rate than others as they use your existing equity on the property as its security. When done well, this can be an excellent way to increase the value on your home long term. It can be risky too, which is why working with an expert is vital to protect yourself.
Can I Reverse My Mortgage Refinance?
Just like any other mortgage it is possible to reverse the refinancing of your home loan. There are several reasons why reversing your decision may benefit you. These include a real need to increase the size of the loan thereby securing more funds; it may offer in the long term serious savings in the interest being paid or if you want to change how you are paying the installments. It is a very complicated system so fully considering this decision with the advice of a mortgage broker is highly advised.
If you're looking to refinance your existing home there's hardly been a better chance to get a great deal than there is right now. We'll help you not only find the right deal at the best rates, we'll help you put together your application so your chances of a fast approval are maximized.
Interested? Then let's talk. We can meet up for a call or video chat and we can usually process the whole application without you needing to leave your home or office.
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