Simply put, when you refinance a home mortgage loan, you pay off an existing home mortgage loan in exchange for a new home mortgage loan. The answers to “how, when, where, who you choose to refinance with etc.” will all influence your decision to refinance your home mortgage loan.
Since your home is probably your most valuable asset, it is prudent to be well-informed before you choose to work with any lender. Working with a qualified mortgage specialist will help you understand all the pros and cons of your individual situation before you make that final decision.
When you are considering refinancing, it is very important to make a well-informed decision and work with a trusted name. Canadalend.com is not just a refinance or lending company, but also a trusted team of professionals who are geared to provide you with all the assistance and knowledge that you would require to help make that all-important and well-informed decision for your refinancing needs.
There are a variety of reasons of why you may want to consider refinancing your home mortgage loan. Some of these are:
- You can get a new home mortgage loan at a better or lower interest rate
- You may want to increase the length of your home mortgage loan term to reduce your payments
- On the other hand, you may want to decrease the length of your home mortgage loan term to pay off your mortgage sooner
- Move from a variable rate mortgage to a fixed rate mortgage
- Available funding for home improvements and renovations
- Refinance your home to pay off debt
- Increase cash flow for investments or for other purposes
- Save thousands of dollars in interest over the life of your loan
Remember to always take advantage of your home equity mortgage loan to save money!
The Benefits of Refinancing
- Reduction in Your Monthly Obligations – The primary benefit of refinancing your mortgage is to reduce your monthly obligations to your creditors and to increase your cash flow. Our goal is to reduce your monthly obligations and put more money back in your pockets.
- Shorter or Longer Mortgage Period – Getting refinancing on your property can also help you to decrease or increase the amortization of your mortgage. You can either pay off the loan amount in a much shorter time span, as the lower interest rates of the refinancing can allow you to do so conveniently, or switch to a longer mortgage period and reduce your monthly payment amount!
- Accessing Your Home’s Equity – Paying out the principal loan amount in a shorter time frame, especially through a cash-out refinancing solution, can help you to improve your cash flow, which can be then used to make other investments or in home improvement projects.
Finding the Best Refinancing Solution for Your Specific Needs
Nowadays there are a large number of banks, lending institutions, and private avenues spread across the country that are willing to offer a range of refinancing options for you. But before you make a decision, it is very important to understand the basics of refinancing, as this will go a long way in helping you chose the most suitable refinance option for yourself.
What is Refinancing?
In the broadest meaning of this term, refinancing basically refers to home loans and is the act of paying off any existing mortgages with the help of a brand new mortgage. So if you currently have one or more mortgages on your home and take up a new mortgage to pay off the existing house loans you are basically refinancing your mortgages.
Do You Really Need Refinancing?
For most of us, our homes are our most valuable assets. That is why it is very important to consider any kind of decision related to our home loans very seriously. Here are some of the most common situations where refinancing works as the perfect solution for your home mortgage issues:
Lower Interest Rate – If you are on a home loan at a very high rate of interest, your primary reason for opting for a refinance should be to get a loan at a reduced rate of interest. Even though the differences in the rates of interest between a first mortgage and a refinance might sometimes seem very minuscule, a small percentage can also help homeowners save thousands of dollars in the long run.
Reducing Monthly Payments – If your current home loan is overstretching your monthly budget and making it increasingly difficult to meet other expenses, it is wiser to go for refinancing rather than increasing your credit card bills or opting for other forms of loans. A refinanced mortgage will help you to simply increase the repayment period or reduce the interest rate of your home mortgage loan, which will reduce your monthly payments and leave you with increased cash flow.
Decreasing Mortgage Term – Sometimes all financial decisions do not turn out as planned and you may find yourself in a situation where you might want to pay off your home loan in a shorter period of time than you had settled for. At this point, it is a good step to go for refinancing at a reasonable rate of interest which will help you save your money in a considerable way. On the other hand, before you look for refinancing solutions, find out about if there are any penalties involved in paying off your loan in a shorter time period, and if there is, then you should make sure that you are still able to save money through refinancing your home mortgage.
Apart from the above mentioned reasons, you can also opt for refinance if you need extra cash for home improvements or other funding needs. Whether you have a home loan with a variable rate of interest or a fixed interest rate, we can get you the best rates in the market. So whether you are based in or around Brampton, Mississauga, Toronto, or anywhere in Ontario, our Canadalend.com team can help you with all the aspects of refinancing.