If your mortgage payments are no longer manageable or you would like to consolidate your debts, then it might be time to consider refinancing your mortgage. A mortgage refinance in Victoria, BC will allow you to pay off your old home loan with a new loan that has better interest rates. This option could potentially save you thousands in the coming years and free up quite a bit of your income.
The Basics of Refinancing Your Mortgage
After you take out a home loan, you are usually locked into your rates for 20 years or longer. During that time, there might be quite a few changes to your finances, and those old rates could become cumbersome. Unfortunately, you won’t be able to get out of your home loan until it is paid off, and that is why many people explore their options for refinancing. If the old interest rates are no longer ideal or your credit score has risen, then you might want to consider refinancing your home loan. This option can also be used to consolidate your debts if you are paying off multiple loans every month.
Benefits of Refinancing
- Better Mortgage Rates: Interest rates are going to rise and fall over the years, and taking advantage of low rates could end up saving you quite a bit of money. Many residents of Victoria and the surrounding communities contact me simply because their original interest rates are no longer acceptable and they would like to save some money.
- Shorten Your Term: Your original loan might have locked you into a financial agreement that lasts for well over 20 years, and refinancing will allow you to shorten that term. Once your finances have settled and you have built up some equity, switching over to a 15-year loan could be a much better option.
- Immediate Cash Infusion: In addition to getting better rates, refinancing can also be used to acquire a cash infusion. Once the paperwork has been finalized, you have the option of receiving a lump sum that helps you pay off other loans or upgrade your home.
Guidelines for Refinancing
Just like any other type of loan, there are some guidelines for refinancing your mortgage. While every lender is slightly different, most of those companies require you to have at least 20 percent equity in your home. They are also going to take a look at your income and credit score to determine if you are qualified. If your credit score has dropped or you are struggling to make your mortgage payments, then I will go over some of your other options during our initial consultation.
What to Expect
The total length of this process depends on a few different variables, but most homeowners can refinance within 45 days. Following your initial consultation, we will take a look at a few different lenders to see which company you would like to work with. Once you have chosen one or more companies, I will help you fill out and submit all of the required paperwork. As long as the information is correct and there are no other roadblocks, you should receive an answer within one or two months. After the final paperwork is signed, your rates should change almost immediately.
Next Steps to Take
While this process might seem overwhelming, I am ready to help you every step of the way. I work with well over 60 amazing lenders that are going to put your needs first. If you are interested in refinancing your mortgage, then I invite you to contact me today to learn more about how this type of loan works.