Refinance
BREAKING NEWS -- 100% financing and 40 year amortizations will only be available in Canada until October 15th, 2008. If you are thinking of purchasing with no downpayment, act now or you may be left out!!
Refinancing your home is usually one of the largest financial decisions you will make in your lifetime, so it only makes sense to shop around and get professional advice. By working with as many lenders as possible, we increase your borrowing power and help you obtain better than bank rates and more flexible mortgage options!
Consolidate existing debt while refinancing your mortgage
1st mortgage refinances to 95% of your home's value
Save hundreds each month with the best rates on the market!
High ratio refinances available for poor credit or self employed
2nd and 3rd mortgages available to 95% of your home's value
Why Refinance Your Mortgage?
Debt is debt. Regardless of whether you have credit card bills, car loans or a mortgage, you will eventually have to pay back the money. It only makes sense to use what is likely your greatest asset, your home, to make sure you have the most flexibile repayment options and the lowest interest rate available.
Refinancing is generally something you do to get access to the equity in your property.
Perhaps the interest rate on your mortgage is too high, and you want to refinance to get that rate down. If you negotiated a mortgage when your credit rating was not as good, and you've repaired your credit now through a good track record of payments, you should certainly refinance. If you are locked in at a higher rate than you could now get with an improved credit score, it can be to your advantage to pay any penalty clauses and get yourself a better interest rate.
Your best reason to refinance is to lower your interest rate and consolidate your debt. Of all the reasons to refinance, this is one where you are going to benefit without a doubt. If you are carrying a lot of credit card debt and are finding yourself in over your head, refinancing can get you out of the hole and in position to turn your financial situation around.
Refinancing at Renewal
Your mortgage is up for renewal. Your lender has called you, and suggested they can handle your business, you've been a good customer. Why don't you just come in and sign some papers? So, you make an appointment, and you go in, without another thought.
Is this the right approach? No!
When your mortgage is due for renewal, it is an ideal time for you to shop around and really understand interest rates. It might be worth your while to move your mortgage to another lender - particularly if the competition is good and interest rates are lower elsewhere. While another company is competing for your business, they may also offer you other benefits you aren't getting now - including paying any fees associated with moving your mortgage.
First, check your current mortgage and understand if there are any fees associated with moving your mortgage. (This kind of fee is extremely common - and you should expect it.) Once you know there are some costs to you, you should be looking for a lender who pays those fees.
Second, shop around. The easiest way to do this is to have Craig shop around for the right mortgage for your needs - there is no cost and I have dozens of lenders discounted rates at my finger tips. Is your current lender offering you a really good rate? Perfect! You may not want to move. Just go ahead and renew. However, if you can save somewhere else, then you should likely move, especially if your mortgage is for a large amount or you still have many years on it. Why? The long term costs of your mortgage are the result of the interest you pay over the life of the loan. The more you save in interest in the early part of your mortgage (when the amount owing is still high) the less it will cost you over time. If your mortgage is for a very small amount, or you will be mortgage free in 5 years or less, and you are saving less than ½ percent, you may not want to move your mortgage. The savings may not give you enough 'pay back'. Be sure you know how much the fees are to move it, and compare that to what you will be saving. If the fees are more than you save - stay put.
Third, are you getting the kinds of other options you want? Does your mortgage allow you to make lump sum payments whenever you want (or do you only have 1 day a year, on the anniversary)? The open ability to pay extra, from as little as $100 to 10 or 20 percent of the mortgage value, can make a huge difference in the long term costs to you. Every extra payment you make is money directly to the 'principal' of the loan. This means less loan that you are paying interest on!
While it takes some legwork, legwork that I will do on your behalf (usually at no cost to you), if you shop carefully and make the lenders compete for your business, you will usually do better.
Refinancing for Renovations
With the cost of homes in Trenton (Quinte West) and throughout Ontario, it's often better to buy what you can afford and remodel later!
Once you are ready to remodel, particularly if you've lived in the house for a few years or have some equity built up, you may find that your best option is to refinance.
Most lenders are willing to discuss refinancing to get you some more money. What they are really doing is looking at the current value of your home versus the amount you have mortgaged, and they give you some cash back from the difference. This means that your mortgage gets bigger - and the cash difference comes to you.
This can be a better deal than negotiating for a separate home improvements loan, but be careful! You always have to read the fine print:
First, be sure that you will not be paying fees to do this. Your lender already has your business, right? You are offering them MORE business, right? As long as you are a good customer, they should be thanking you! You are going to make them money. At worst, fees should be minimal, as long as your credit rating and history are good.
Second, be sure that the interest rate for your new mortgage is fair. Do some homework, and ensure that just because you are refinancing doesn't mean that your lender is taking an opportunity to get more out of you.
Third, be sure that your lender knows that you are comparing options. If you want your lender to compete for your business, you should be knowledgeable. Don't be browbeat into something because they are 'doing you a favour'. Once you have your cash in hand - happy renovating!
Refinancing for Credit Problems
Unfortunately, in this day of high consumer debt, more people than you'd like to think will find themselves with this problem. Refinancing is one tried and true remedy for the problem of high interest costs on credit card or other consumer debt. And frankly, once you have submitted a payment late on a credit card, the level of interest you pay can be truly punishing. I've seen examples of almost 30% interest when a person was late on as little as one payment. You really have to read the fine print with credit cards.
I've known many people who have gotten into their credit problems with credit cards. While credit cards are a modern day "convenience" and many transactions are hard to do without them, these same cards have become a serious difficulty for many of us. Many economists are starting to sound the alarm on consumer credit, because we spend more than we make, and no matter how you add that up, it can't continue for long.
Having said that, refinancing for credit or debt problems is not something that you should do without help. Lenders are likely to 'punish' the person who is in this situation with high interest rates, and other penalties and fees. This is where it can really pay off to seek out the help of a seasoned mortgage specialist such as Craig. I can work with you and with reputable lenders to consolidate your debt and have you come out the other end paying lower payments while still getting the debt paid off faster than you would have otherwise.
Are any of these scenarios sounding a little too familiar? Take action sooner as opposed to later. Ufortunately, credit problems often get worse before they get better. The sooner you put out a call for help, the sooner you will be moving in the right direction with your finances. I can help your financial situation get better much more quickly.
Ultimately, you don't want to lose your home if you own one. If you do own a home, you are in a much better position than many who are fighting with credit problems. You can use that home to help boost you out of the hole. Now's the time to do it.