Home Refinancing
In many situations home refinancing is a great way to help you achieve these goals. Before making a final decision, it is best to speak with an accredited mortgage professional about how home equity loans will affect you.
Home Refinancing
Take advantage of historically low
interest rates, cut hundreds off of
your monthly payments today!
How Does Home Refinancing Work?
The concept itself is simple – you pay off your existing mortgage and take out a new one. What isn’t so simple is finding favourable terms for this type of financing. That is where our team of mortgage brokers comes in. With our expertise on your side, you will get the best refinancing rates.
When Should You Consider Home Refinancing?
There are many reasons why mortgage refinancing for self employed is a viable option for homeowners:
- Get a Lower Interest Rate – If you are planning to stay in your home for a long time, you may be able to reduce your monthly payment. If your current interest rate is at least 2 percentage points higher than the current market rate, refinancing may be a good idea.
- Repay The Principal Faster – Switching to a shorter-term mortgage can help you pay off your mortgage faster.
- Switching Between Fixed and Variable Rates – If interest rates are low, most homeowners opt for a fixed rate – monthly costs are known and the rate is locked in. When interest rates increase, many homeowners prefer a variable rate, which tends to start off lower. Each homeowner has unique financial circumstances, but many can save money by changing between fixed and variable rates.
- Borrow Against the Value of Your Home – Use the equity in your home for major expenses. Debt Consolidation, renovations, refinancing student loans, cash out refinancing – all are possible with the right kind of home refinancing.
Associated Costs
There are usually costs associated with home refinancing. With the help of a CMI broker you can get an idea of the costs and weigh them against the possible financial benefits of refinancing.
- Prepayment Fees – Some mortgage agreements require a prepayment fee for paying off a mortgage early. This kind of fee is less common when you refinance towards the end of the mortgage term. If you refinance in the middle of your current term, a fee is more likely. This fee is typically a percentage of the principal.
- Standard Mortgage Fees – Refinancing means you are obtaining a new mortgage after paying off the old one. As such, you may be required to pay the same kinds of fees you did with your first mortgage: legal fees, application fees, title search, title insurance fees, and home inspection fees.
CMI Can Get You The Best Terms
As you know from your first mortgage, the choice of mortgage terms, rates, and lenders is a little overwhelming. CMI mortgage brokers can help you get an equity loan to suit your budget. We may even be able to arrange home refinancing for you at no cost.
