The Ultimate Guide to Refinancing Your Mortgage

Name: Loewen Group Mortgages
Address: 321 Nautical Blvd,, Oakville, ON, L6L 0C1, CA
Telephone: (289) 337-4029
Price range: $

Refinancing your mortgage may be a smart financial move, post COVID-19 pandemic and global economic scenario. Refinancing your mortgage is beneficial in terms of reduction in interest rates, monthly payments, and consolidation of debts or help to access your home’s equity.

Read on further to understand everything you need to know about refinance mortgage services in Burlington, the Greater Toronto Area (GTA), and other parts of the country.

What is Mortgage Refinancing?

Let’s first get our basics right. Mortgage refinancing replaces your existing mortgage with a new one and newer terms. There could be various reasons for homeowners to opt for mortgage refinance. Read on to know more.

Debt consolidation mortgage

Debt consolidation mortgage is a single loan with a simplified repayment option. This mortgage combines your current debts into one loan.

Lower Mortgage Rates: Secure lower interest rates, and reduce your monthly equated payments and interest rates via mortgage refinancing.
Debt Consolidation: Refinancing helps you consolidate high-interest debts, especially ongoing personal loans into a single mortgage payment. You can pay lower Interest rates too.
Access Equity: You may use your home equity to finance medical bills and other large expenses.
Modify Loan Terms: Refinancing a mortgage allows you to adjust your mortgage terms. Through this adjustment, you can save on interest and even repay your mortgage faster.

Can I Refinance My Mortgage with Bad Credit?

Yes. It is possible to refinance your mortgage with bad credit. But, it is very challenging. Lenders prefer borrowers with good credit scores. However, there are some options for you if you have less than the desirable credit.

Improve Your Credit Score: You could pay down some of your debt, before you refinance. This will help you avoid new credit inquiries.
Get a Co-signer: If possible, get someone with a good credit score to co-sign the mortgage with you. You can get better terms this way.
Secure Government Backed Loans: Go for Government backed loans such as those by the Federal Housing Administration (FHA) tend to have lower credit requirements.
Consider All Your Options: With so many different types of lenders, offering loans at various terms, you need to weigh all your options. Ensure that you choose someone who is willing to work with your credit situation.

How Much Can I Save by Refinancing My Mortgage?

Several factors influence the savings on your mortgage refinance. These factors are:

Differences in Interest Rates: The difference of interest rates determines interest savings over the total mortgage period.
Monthly Payment Reduction: Difference in interest rates or mortgage term will also change the amount you repay every month.
Break Even Point: Refinancing involves closing costs. Consider those to determine if your monthly savings will help you recover those costs.

What Are the Closing Costs Associated with Refinancing?

Closing costs differ from lender to lender but typically range from 2% to 5% of the total loan amount. It includes:

Application fee: The fee charged by the lender to process your application.
Origination fee: The fee to process the new loan.
Appraisal fee: Cost to have your home appraised to determine its current market value.
Title Search and Insurance: The fee incurred for verifying the title and obtaining insurance.
Inspection Fee: Costs related to necessary home inspections.
Attorney Fees: You may incur a legal fee for review of your loan documents.
Prepayment Penalty: Some lenders levy a prepayment penalty for paying off your mortgage early.

When you are deciding to refinance, do factor in all of these costs because they can impact your overall savings.

Is It Better to Refinance or Get a Home Equity Loan

Deciding between refinancing or getting a home equity loan depends on your financial goals. Here’s what to consider:

Lowering Your Monthly Payments: Choose refinancing if your primary financial goal is to get a respite from your monthly payments.
Accessing Large Cache of Cash: Home equity loans are better in this respect, because you receive lump sum cash. However, your interest rates will be higher as compared with refinance.
Debt Consolidation: Both options are viable for consolidating debt, but refinancing is better if you want to lower your overall interest rate.
Loan Term: Refinancing allows you to lower your loan term, while home equity loan typically offers fixed terms and rates.

Working with a Mortgage Broker

Whether you are looking for a Burlington mortgage refinance or a GTA mortgage refinance, working with a reputed and knowledgeable broker is necessary. This option is also viable if you are exploring options with a mortgage broker in Hamilton.

Mortgage brokers like the ones at Loewen Group mortgage refinance have access to both a wide range of knowledge and lenders, allowing them to offer you personalized advice based on your specific needs.

Conclusion

Refinancing your mortgage can offer numerous benefits – from lowering your interest rates to accessing your property’s equity. By understanding the factors involved in making a selection and evaluating your financial goals, you can make an informed decision about whether refinancing is right for you.

Remember also to consider the closing costs and potential savings. Take advice from a reputable mortgage broker in Burlington or Hamilton in this regard.

With the right approach, you can also access equity despite bad credit and take advantage of mortgage refinance offers.

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James Loewen

Top Factors to Consider When Choosing a Mortgage Broker in Canada

By james loewen • November 21, 2024

Top Factors to Consider When Choosing a Mortgage Broker in Canada In Canada, buying a house can be exciting yet daunting, especially when thinking of the best mortgage to choose. One of the best ways to make this process easier is by engaging an experienced mortgage broker in Canada. These are professionals who work by connecting you to lenders so that you can find the best loan option available for you. Their vast knowledge of the mortgage sector enables them to help you get the best offers possible. But how do you go about choosing the right mortgage broker from the many available? Factors to Consider When Choosing Mortgage Brokers: Looking to choose mortgage broker? Here are the factors to consider: 1. Experience and Expertise In terms of mortgage broker factors , choosing a mortgage broker, the first important aspect to examine is their experience. This is because the Canadian mortgage sector is quite multifaceted with many laws, rules, and lender union characteristics. An experienced broker is likely well versed in these intricacies and will provide such advice depending on individual financial capabilities. Ask for how long they have been in the business and how many clients they have successfully assisted. Also, a seasoned mortgage loan officer usually has established relationships with many lenders, which in turn will offer better options for you. Most of the time, even more useful information will be when a mortgage broker works in a particular niche. For example, first time home buyer Burlington or the local property market of Hamilton or Milton would be niches where the expertise will come in handy. Need help to choose the best mortgage broker in Canada? Contact us at Loewen Group to get mortgage broker tips and services. Call (289) 337-4029 or start here . 2. Range of Lenders and Products An adept mortgage brokerage firm must have access to several lenders as well as different mortgage options. It is because mortgage broker in Hamilton are on good terms not only with banks and credit unions but also with private lending firms, so they will definitely help in finding the most suitable loan according to the client’s needs as well as their financial capabilities. Also, it is more likely that favorable terms for the loan and adequate interest rates are available when a broker has contacts with several lenders instead of one or two. Ask the broker what type of lenders they work with. Brokers with a larger network tend to be able to provide more options than those who are limited to a few lenders. Be sure also to ask if they have such product capabilities or that they have worked with certain types of lenders. 3. Reputation and Reviews Research and analyze the feedback on the best mortgage broker in Canada. Look for online appraisals on Google, social networks, and other further sites, as well as testimonies of their previous clients. An ideal mortgage broker will always have great reviews from clients who appreciate the broker’s skill and results. If family members, friends, or coworkers have ever used the services of a specific broker and were pleased with the outcome, do not hesitate to request contacts. It is more likely that a trustworthy and reputable mortgage broker in Hamilton, Milton, or Burlington will provide great service and navigate you through the mortgage process seamlessly. 4. Knowledge of Government Programs and Incentives Canada has many programs designed to help young starters, in particular first-time homebuyers. A good broker would know these plans and help you make use of those available to you. For instance, should you be purchasing in Burlington, Hamilton, or Milton, they may know of local initiatives in Ontario such as the Home Buyers’ Plan HBP or even the First-Time Home Buyer Incentive. Ask the potential brokers if they are aware of the schemes and if they have helped clients to access them in the past. You can save on expenses and eschew difficulties in buying a home by engaging the services of a broker who is knowledgeable about government support programs. 5. Local Market Knowledge Market research at the local level can considerably impact one’s decision on acquiring a property. Be it Burlington, Hamilton, Milton, or any other area, a mortgage broker Milton with extensive experience in the given region will be aware of the community features, range of the properties, and prevailing tendencies that affect the mortgage or home buying schedule. He or she probably has turned into contacts with banks, appraisers, and real estate agents, thus further shortening the time frame. Conclusion A crucial first step in the home-buying process is selecting the appropriate mortgage broker Burlington . You may discover a broker who meets your demands and will strive to get you the best mortgage by taking into account elements like experience, reputation, variety of lenders, customer service, and local knowledge. Taking the time to do your homework and make an informed decision can make all the difference, whether you're a first-time purchaser in Burlington, searching for the finest mortgage broker tips, or considering your alternatives in Milton. A knowledgeable, experienced broker will help you comprehend your alternatives, walk you through the mortgage process, and make sure your mortgage fits your long-term financial objectives.