Refinancing Your Home With Jordan St. Pierre-The Mortgage Centre
Are you debating whether or not you should refinance your mortgage? If you are, you’ve come to the right place for help. There are various reasons to refinance, so don’t let low rates be your only motive. Instead, consider other prospects like shortening or lengthening your mortgage term or amortization, converting to an adjustable-rate or fixed-rate mortgage, or utilizing your home equity to meet a financial emergency, large purchase, or consolidate debt.
Evaluating your requirements for refinancing is essential because, like your original mortgage, you need to pay a certain percentage of the principal value, make up for the costs associated such as appraisal, and potential discharge fees of your existing mortgage. As a result, before you take the leap, you need to be sure that your decision to refinance will actually benefit you. Similarly, you need to ensure that you can handle your new debt responsibilities.
To help you determine whether refinancing is ideal for you, mortgage broker Jordan St. Pierre has explained how this mortgage product work, and the opportunities that come along with it.
Refinancing and its advantages
Refinancing your home refers to pulling money or equity from the total value of your property. This is different from a regular renewal or transfer as your mortgage balance becomes larger, or the amortization is extended.
The purpose of this product is to use the money from within your home’s value to either:
a. Reduce and simplify monthly obligations by paying off higher interest debts such as credit cards, unsecured lines of credit, vehicle loans, or other high-interest loans.
b. Lower your monthly mortgage payment by extending the amortization and freeing up monthly cash flow.
c. Use existing equity for higher-yielding investments.
d. Use existing equity to renovate your home and increase its value.
e. Use existing equity for the down payment of another home or investment property.
As you can see, a refinancing product is designed for people who own their own home and would like to borrow up to 80% of the value of their property or those that have equity in their home and would like to reduce their monthly mortgage payments by extending the repayment period. It is also meant to help you reduce interest costs and pull equity for savings or investments, especially during times of uncertainty.
If you believe that these aspects suit your requirements, give me a call at (780) 953-7314, and I will help you find out if it matches your needs and if you qualify. To check if you match the criteria for refinancing, I will need to determine the value of your home and the percentage of your existing financing. If you have less then 80% financing in place, there may be room to borrow, allowing you to invest more in your needs.
When it comes to the cost of refinancing, many lenders have promotions to cover all associated fees. However, related expenses may include appraisal costs of approximately $99 to $350 depending on the type and location. Legal if not covered must also be accounted for, which can be anywhere between $350 to $2500 depending on complexities.
If you don’t qualify for refinancing due to your current financial situation or the terms of your mortgage, there are various alternatives that you can consider. These include unsecured financing, borrowing from family members, and saving as much as possible to meet your urgent requirements.
To learn more about refinancing, reach out to Jordan St. Pierre at The Mortgage Centre. I am a mortgage planner in Spruce Grove, Stony Plain & Edmonton Alberta, and I specialize in several mortgage products. By building a relationship with my clients, I make sure that every interaction is a positive experience for them. At the same time, it allows me to offer tailored mortgage solutions for my clients’ specific needs, goals, and future plans. I am unbiased and honest in my approach to mortgages and leave nothing to chance.