Mortgage Refinance Whitby
What Does Refinancing Your Mortgage mean?
A mortgage refinance is a fancy way of saying that you break the agreement with your current lender to start a new mortgage with the same or a different lender. Refinancing your mortgage can allow you to take advantage of a promoted lower rate, to access equity in your home, or to consolidate other debts. Keep in mind that you’ll need to do some research before deciding this is the right option for you since breaking your mortgage incurs a pretty significant prepayment penalty.
Why Refinance Your Mortgage?
A lower interest rate isn’t the only upside to refinancing your mortgage. You’ll also be able to consolidate outstanding debts and access existing equity in your home. Here’s a little more information about these options:
1. Obtain a Lower Interest Rate
Depending on the size of your outstanding mortgage and the amount of the prepayment penalty, you can save thousands in interest by a mortgage refinance. This is a great solution for those who find themselves struggling to meet their monthly payments and want to take advantage of a promotion or a lower rate offered by another lender, or their existing one.
2. Access Equity in Your Home
Equity equates to cash in your home. By refinancing, you’ll gain access to all that cash instantly. This is a popular choice for homeowners who face large expenses unexpectedly and don’t want to take out a loan.
3. Consolidate Debt
Depending on how much equity you have in your home, a mortgage refinance will allow you to pay out high-interest debt that would otherwise accrue an unsavory amount of interest over the life of the repayment period.
Mortgage Refinance Whitby: How it’s Done
There are a few options when it comes to mortgage refinance in Whitby. You can either:
- Break your current mortgage contract early
- Blend and extend your mortgage with your current mortgage lender, which means your lender offers you a blended rate of your current mortgage rate plus any other loans or money borrowed, so you pay less interest in total on all loans
- Or take out a home equity line of credit, which allows you to use the built-up equity in your home at your own discretion
Where to Learn More About Mortgage Refinancing
Mortgage refinancing can be a complicated and confusing financial overture, so its in your best interest to speak with a representative at Dunlop Mortgage before determining this is a path you want to take. Our free service will assess your personal situation, assess your options, and let you know if this is right for you and your financial goals. Mortgage refinancing in Whitby doesn’t have to be confusing, and we’d love to help!