Refinancing
Refinancing
Debt consolidation
Whatever your reasons for wanting to refinance your existing mortgage—whether it be to reduce your monthly payments by consolidating non-mortgage debt, free up funds for investments or to fund improvements to your home, etc., we can help you. Whatever the reason, we can assist you in negotiating with your current lender or some cases even switch to a new one who could provide you with a more favorable rate, terms or conditions!
To start the process, here are a few things you need to know:
Combining Existing Mortgages
When you combine mortgages and increase your mortgage where the final mortgage amount is greater than 80% of the value this will result in a high-ratio situation and you will be required to pay an insurance premium. When this occurs, one needs to look closely at the total amount of savings along with the cost of mortgage insurance to be certain such a step would be financially worthwhile.
Breaking a closed mortgage to transfer to a new lender
A number of closed mortgages offer a feature that allows arrears to be paid out with a penalty, after a certain amount of time has passed on the mortgage. You can choose the “prepayment” clause in your mortgage to determine your financial standing and—even better—call your institution and inquire about the cost of paying out in full.
Consolidating other debts
The interest rates charged by lenders on unsecured loans, lines of credit and credit cards are typically higher than the rates offered on funds secured by a mortgage. Unsecured debts have a higher rate than your mortgage as the lenders compensation in case you default.
It would be logical for most people, therefore, to simply use what available home equity they have so as to pay out their debt as this reduces interest cost.
If the total of your existing mortgage and the debt to be refinanced amounts to less than 85% of your home’s value, and should your income and credit standing pass qualifications, refinancing your first mortgage shouldn’t be too hard.
Combined mortgages result in a new “conventional” mortgage
High-ratio insurance is not a requirement if the new mortgage amount is less than 80% of the current value of your home. If your income and credit rating allows you to qualify, Don Johnstone can help you!
Whether you have insurance or otherwise, one should keep in mind a critical factor which causes the failure of many such refinances. The new mortgage will often require that some or all of the cash flow previously used to service the now consolidated debt is now applied to the new mortgage. A majority of the homeowners who go through this process tend to simply take increase in the cash flow savings into an upgraded lifestyle: they could either re-incur debt that has already been paid out or incur a new one for which they now qualify—or both.
It is vital that you approach such consolidation or re-combination of your obligations with a clear and unmitigated priority of applying all your savings toward paying the mortgage. Otherwise, this new mortgage will be more of a burden rather than a solution. For more information, you can contact Don Johnstone at (email address).
Want to know if a Second Mortgage may be right for you?
- Has your bank has turned down your loan request?
- Are you unable to obtain financing from other sources?
- Are you self employed or unable to verify your income?
- Have you had some credit problems in the past?
- Do you need money quick and for a short term?
- Do you need to consolidate debts to avoid high interest rate credit cards?
We have direct access to both institutions and private lenders of second mortgages for quick response and fast funding.
The funds available on your second mortgage depends solely on how much you need, the current value of your home, the existing mortgage(s) on your property and your capability to repay the mortgages. For quick answers to your questions and to complete your second mortgage application, apply or contact me today!
No Obligation | No Down Payment | No Problem!
Orangeville Office
193 Broadway,
Orangeville, ON
L9W1K2
Real Mortgage Associates Inc.
578 Upper James Street, Hamilton,
Ontario L9C 2Y6 Hamilton
Contact Info
- (519) 362-0353
- sohidon@gmail.com
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