Mortgage Tips
Although most people have heard of home loan refinancing, many are unfamiliar with its exact meaning.
When you arrange a home loan refinance, you obtain a new mortgage at a lower rate and pay off your current mortgage. With the new mortgage you can save significant amounts in interest and pay down your principal faster or borrow extra money to help manage expenses and debts. It’s that simple.
Canadian Mortgages Inc. offers generous home loan refinance options, tailored to your specific needs.
If you want to save money or obtain the cash you need to pay for large expenditures, refinancing could be the answer.
How it Works
With home loan refinancing you start fresh with your mortgage. You set up an entirely new mortgage and then use it to pay off your existing mortgage. The key is to ensure that you refinance when interest rates are lower. The general guideline is to refinance when market rates are at least 2 percent lower than your current mortgage rate. Here’s an example:
- You owe $100,000 on a mortgage and are currently entering the second year of a five-year term. Your current mortgage rate is 6.4%, but you have contacted a mortgage broker who is offering 4.25%. The savings in interest make this home loan refinance very attractive.
Refinancing can help you manage expenses too. Let’s say you need $25,000 to renovate your kitchen or to pay off a car loan, credit card debt or other debts. Using the example above, you would take out a mortgage at 4.25% for $125,000. You could then pay off your old mortgage and use the extra money for those expenses. This is called a cash-out mortgage refinance.
CMI Home Loan Refinance Terms
Because we work with a broad
selection of lenders, including many private lenders and lending groups, we are
positioned to offer you generous refinancing terms:
- Up to 95% financing for owner-occupied homes
- Up to 95% financing for owner-occupied homes with self-insured lenders
- Up to 90% financing for vacation or rental properties
- Flexible amortizations to suit your financial circumstances
Because you are paying off an existing mortgage and taking out a new one, there may be additional costs, like a penalty for paying off the first mortgage early, and legal and other fees for the new mortgage. A free consultation with a CMI mortgage broker will lay out all of the costs so you can compare the costs and the benefits.
Free Quotes Within 24 Hours
CMI’s mortgage brokers are certified professionals who can do the tricky work of negotiating a home loan refinance for you, even when you are a “non-traditional” borrower. We have helped countless individuals with limited salary documentation and poor credit history obtain the financing they need.
Want to learn more? Call 1 888-465-1432 for more information.
