Is Refinancing Right For You?

Author: Kristi Sauter | | Categories: debt consolidation , mortgage broker Medicine Hat , mortgage for first time home buyer , mortgage for home improvement , mortgage for home purchase , mortgage for rental property , mortgage for second home purchase , mortgage for self employed , mortgage lending , mortgage refinance , mortgage renewal , repeat buyers mortgage , residential mortgage , reverse mortgage , spousal separation mortgage

Blog by Trilogy Mortgage Corporation

Are you considering refinancing your mortgage, but aren’t sure if it’s the right option for you? Usually, the main trigger for refinancing is to take advantage of current market rates. However, there’s so much more potential that refinancing has to offer. To help you see if this potential resonates with your requirements, mortgage specialist Kristi Sauter at Trilogy Mortgage Corporation has explained the various aspects of this mortgage product.

What is refinancing, and when is it obtained?
Mortgage refinancing refers to the process of replacing an existing mortgage with a new one. This is usually done to assume additional debt to meet your latest goals or capitalize on a lower rate to pay down your debt to make it more affordable. Refinancing a mortgage also allows you to shorten the term of your mortgage and pay it off faster.

Similarly, refinancing your mortgage offers you the opportunity to convert from a variable rate mortgage to a fixed-rate mortgage or vice versa so you can enjoy either option. At the same time, it allows you to tap into your home equity for immediate funds to deal with a financial emergency, pay for a large purchase, or consolidate your debt for a more manageable repayment schedule.

What are the challenges of refinancing?
One of the biggest challenges of refinancing a mortgage is failing to see the costs associated with it. When you pay off your original mortgage before it’s due (to replace it with a new one), there may be penalties you need to account for. Your mortgage associate should tell you if this cost will be worth it in the long run with the new lower refinancing rates and benefits you’re looking to obtain.

Most of the time, refinancing can put you farther ahead financially, provided you pay attention to the terms and costs of your new and old mortgages. Unfortunately, many borrowers misunderstand this causing them to take on financial burdens.

How can you ensure that refinancing works for you?
To make the most of your mortgage refinance, you first need to identify your personal and financial goals. Accordingly, you need to determine if refinancing can fulfill these goals. Next, you need to find out if there is a cost for breaking your existing mortgage. Accordingly, set up a repayment schedule that will help you capitalize on the lower rates without making your current situation uncomfortable. Be sure to use this opportunity to put yourself in a better position, not to acquire more debt unless necessary.

Once you’ve done your research and planning, the next step is to apply online to refinance your mortgage the same as you would for a new mortgage. If you feel that the process of refinancing may be too strenuous, an alternative you could try is a Home Line of Credit (HELOC). On the other hand, if you feel like you’re struggling with these steps, reach out to Kristi Sauter at Trilogy Mortgage Corporation.

As an experienced mortgage broker in Medicine Hat, AB, I have vast knowledge and connections to help you with your mortgage needs. Besides this, I am dedicated to helping you save money and meet your financial goals with as little stress as possible. When you sign up for my services, I make sure that I am available to help you throughout your mortgage journey so you can pay off your dues completely without hassle.

To learn more about my services, please click here or get in touch with me by clicking here