Mortgage Refinancing in Edmonton– the “Remortgage”
Mortgage refinancing can be ideal in a variety of situations, particularly if you’re tied down with a high interest mortgage loan. Simply put, mortgage refinancing is a new loan that is used to pay off your current loan. Refinancing usually allows for a lower interest rate to be negotiated as well.
Refinancing Your Mortgage Can Be Less Expensive Than a Traditional Loan
There are several reasons to opt for mortgage refinancing in Edmonton. Most commonly, it is excellent for use as a debt consolidation loan, due to the accompanying lower rate. Most of the time, mortgage refinancing is less expensive than obtaining a traditional mortgage loan.
Good Credit Can Help You Get a Low Rate
The better your credit, the better your chances of securing favorable terms and a lower interest rate. Check out our mortgage refinancing calculator to determine the amount you’ll be expected to pay as principal, interest, and other fees.
With our experience in the Canadian mortgage landscape, a Brokers For Life mortgage associate can ensure you’ll get approved with a great refinancing deal. Or, try our quick, and secure, online application to get our mortgage team working for you right away.
How To Refinance A Mortgage In Edmonton – We Make It Easy
The refinancing process can be the perfect time to get a customized mortgage loan.
Regardless of what mortgage loan you decide to go with, our team can guide you through the refinancing process, making it easy and stress-free for you. You are sure to get the best out of your mortgage refinancing deal.
Refinancing Considerations – Things to Keep in Mind
No matter why you are refinancing your home, the first consideration to keep in mind is simple: you must own it. You can use only 80 percent of the value of your home, determined through an appraisal. You may or may not have to pay an insurance premium on your refinancing, depending on what type of mortgage loan you choose.
There are some legal and appraisal fees that you must pay as a homeowner before securing a mortgage refinancing Edmonton located deal. Fortunately the city does not have any feed related to refinancing in Edmonton. In most cases, the fees from your previous mortgage can be rolled into the total mortgage amount, but keep in mind that you’ll have to pay the initial amount out of pocket and be reimbursed by your mortgage funds later.
A mortgage prepayment calculator is helpful in calculating the monthly amounts, principal, and interest rates, to be paid, together with other fees associated with the mortgage refinancing.
How to Pay Off Existing Mortgage & Take a Larger One
Mortgage refinancing involves paying off your existing mortgage in order to take out a new, larger one with a different lender, or renegotiating the terms and amount of your mortgage while remaining with the same mortgage company. If rates go down, you may be able to save money by refinancing to take advantage of the new lower mortgage rates, although you will need to measure your savings against any premiums or fees that may be involved in the mortgage refinancing process. You may need to cover appraisal or legal fees, but some mortgage refinancing loans can package these fees into the mortgage refinance. This is called capitalizing the extra expense and we would have it added to your mortgage.
Qualifying Parameters for Mortgage Refinancing
In order to qualify for mortgage refinancing in Edmonton, you need to have at least 20% equity in your home as the new CMHC rules say that you can only refinance up to 80% of the value of your home. The example would be if your home was worth 100000 then you could only refinance it to 80000 dollars through conventional mortgage companies. The other option is to seek private mortgage refinancing and in that case you can refinance up to 85% of the value of the property. While this is a more expensive way to do a mortgage refinance there are situations where it may be an option.
Refinancing Documentation – Points to Keep in Mind
Once you have refinanced your mortgage the options for the money are wide open unless you had specifically assigned the money to pay bills through the refinance documents. In a lot of cases clients use the funds from the refinanced mortgage to renovate their homes, put money down on a second home or to invest in the retirement with the thought of later selling the home.
Many of our lenders use a title insurance company to transfer the mortgage refinance documents saving you legal fees and time as they will come to your home to complete the mortgage refinance documents. Some of the mortgage refinances we do are through financial institutions and they can do the documents through their branches again saving you money of not having a lawyer do the paper work for your mortgage refinance.
Over all mortgage refinancing is an option that needs to be analysed closely. We will help you weigh the pros and cons of paying early penalties and show you how much you may save buy paying down debt and reducing your monthly overhead.
Mortgage Refinancing in Edmonton
Why Would You Refinance Your Mortgage?
Lots of reasons come to mind, equity locked away in your home is one of the things that people try to access on a regular basis. Many times people are just looking to reduce the high cost of credit cards and other debt and taking equity out of your home by refinancing it can be a better solution than paying high interest rates. Life sometimes happen as well, children starting university or unplanned illness can put a strain on many people and having the opportunity to refinance and take out cash or reduce your monthly payment can be a viable option.
Ways To Refinance A Home In Edmonton
There are several ways to refinance a home, first and the most obvious would be to simply redo the mortgage and take a new fixed rate mortgage. Hopefully rates are lower than what you are presently paying and it will make for a new lower or at least similar payment. The second option for refinance to add a home equity line of credit to your home these are more commonly known as a HELOC.
Understanding The Math Behind Mortgage Refinancing
In recent years the federal government mandated that we could no longer take out the full 95 percent of equity in our homes. They made the change to the rules so that you can now only take out 80 percent of the value in a new mortgage. So if your home is worth 100000 dollars then you can only have mortgages and HELOC equalling 80000 dollars. This also brought about a change that says that if you have a home equity line of credit it can only equal 65 percent of the value and the remaining 15 percent to equal 80 percent must be in a fixed rate or variable rate mortgage. Sound confusing, it is and many people don’t realize that the change happened and that the last 20 percent of equity is locked away in your home. One way to get more out of a refinance is to go with a cash back mortgage, in some cases we can refinance your home back to 80% and ask for a cash back mortgage which could take you to 85% with some of our lenders. Rates are higher but if you need the cash it is a good option.
How To Apply For Mortgage Refinance In Edmonton
Mortgage refinancing is the same process as if you were applying over again for a mortgage. The same documents would be required to present to a lender as the first time you applied, the only difference is that no down payment is required and the lender may give you cash at the end. The team and Dominion Lending Centres Brokers for Life are all experienced in the mortgage refinance process and more than willing to help you understand the process.
Fill the form below to contact a local mortgage associate in Edmonton today, to discuss your mortgage refinancing needs.