Do you know what refinancing is and its main purpose?
Refinancing your property allows you access to funds, using the equity in your home. And, it can be a lower cost way to borrow the money than taking out a traditional loan. Learn about (1) Reasons to refinance, (2) How to know if property refinancing is right for you, and (3) Basic requirements for refinancing your property.
5 Reasons to Refinance
As a property owner, we know that you’ve worked tirelessly to build home equity. This home equity can help you if you are thinking about refinancing your property. You may choose to do so for a number of reasons, such as:
- Consolidating your debts
- Consolidating your first and second mortgages
- Renovating your home
- Lower existing mortgage interest rate
- Fund Children's higher education
- Purchasing other investments
- Enhancing your assets
How to know if property refinancing is right for you?
To determine if refinancing your property is the right decision for you, first ask yourself:
- Do you find it difficult to make many payments every month?
- Are the payments you make only the minimum payment required?
- How to your credit interest rates compare to current mortgage rates?
- Increase in monthly cash flow
- Children can't get any type of loan from bank and/or univeristy
- Do you have extra money for other investments, such as bonds or stocks?
Mortgage brokers are experienced and can help you, no matter whether you answered yes or no to all of the above questions.
Basic Requirements for Refinancing Your Property
Some of the basic requirements for refinancing include:
- Have an acceptable purpose for your loan – If you wish to enhance your assets, consolidate debts, consolidate first and second mortgages, renovate your home, or purchase investments, these would all be considered acceptable reasons or purposes for a loan.
- Types of eligible properties – Owner-occupied, existing, and investment properties are all eligible, as well as secondary homes.
- Loan-to-Value Ratio (LTV) Limits – LTV refers to the ratio between the principal amount owing on your mortgage and the actual property value of your home, up to a maximum LTV of 80 percent.
- Options for Amortization – Other amortization options are available up to 30 years for uninsured conventional mortgages. This means you get to choose the time (in years) you need to pay your mortgage in full. This decision will also affect your lifetime mortgage interest.
While you could be considering refinancing for any of the above-mentioned reasons, you may have determined that refinancing your property is the right choice for you. So if you meet all the basic requirements, your next step will be to get in touch with an qualified mortgage broker to get the ball rolling. Working with an AKAL Mortgages professional is convenient and enables you to have the qualified help you need to make the decisions that matter when refinancing your property.
When we say YES! We stand behind our promise.
So, contact AKAL Mortgages to get the answers to your question or start the refinancing process today.