Owning a home is a goal that most adults have. In fact, there has never been a person who claims that they do not want to own a home. However, buying a home is not easy. After finding a dream home and getting a home loan to procure it, the loan payments may bog you down for decades. If your financial commitments continue to increase but your income has stagnated, you may find yourself unable to service your mortgage payments. To avoid default and subsequent foreclosure, you should consider refinancing as this will improve your chances of paying off the mortgage successfully.
Why Refinance My House Calgary
1. To Reduce Monthly Installments
The best way to make your mortgage payments more affordable is to refinance. When you refinance, you will get a chance to spread your outstanding mortgage balance over a longer period of time. As a result, your monthly installments will reduce considerably as you will have a longer term to settle the outstanding mortgage balance.
2. To Get an Interest Rate Reduction
If you are currently paying a high rate of interest on your mortgage, but the markets are demanding a lower rate of interest, you can refinance your home to get an interest rate discount. This should not be difficult as many lenders will be willing to give you a cheaper home loan if the prevailing market conditions allow. If your credit rating has also improved, you may be able to successfully refinance your home with better terms and conditions.
3. To Get a Loan
If you need a huge loan, you can refinance your home. You may need some money to use as down payment for a second property or to bail someone out of jail. Whatever the case, you can approach your mortgage lender, or a different financial institution to remortgage your home. Most lenders will offer you a maximum of the difference between the value of your home and the outstanding balance of your mortgage. You can borrow the maximum or any amount to match your needs, but up to that limit.
4. To Lock Your Mortgage Rate
If you have been paying a fluctuating interest rate on your mortgage, you should consider refinancing to fix the rate. This should not be difficult because most lenders are always willing to refinance mortgages if both parties can benefit from the deal. By getting a fixed rate mortgage, your monthly payments will become fixed and make it much easier for you to manage your finances.
When it comes to home refinance, proper timing is key. The right time to refinance is when market rates are low and your credit rating is decent enough.
