Have you ever thought about refinancing your mortgage?
Refinancing your mortgage can provide a great source of equity to use to pay down debt. It can allow you to use the funds to complete some home renovations or top up your investments.
The Mortgage Refinancing Process
The process is simple, we start with a mortgage application and documents to confirm your income to make sure you can qualify for the new mortgage amount. We will require a current letter of employment and 2 pay stubs as well as your last 2 years T4’s.
We also need your current mortgage statement and property tax statement. The mortgage statement lets us know exactly what amount needs to be paid out when the new mortgage is set up.
Once we can confirm you are in a position to qualify for the new mortgage amount, we need to confirm you have equity available.
It is based on the properties current market value. This is determined by an appraisal. Spring and summer months tend to drive property values up since there is more market activity.
Appraisals are based on comparable properties that have sold within the last 90 days. We take this new value and arrange a new mortgage to 80% of the appraised value. This is called mortgage refinancing. It is a great opportunity to pay down high interest debt such as credit cards or auto loans.
If your property value comes in at $400,000. We can arrange a new mortgage for $320,000. If your existing mortgage balance is $280,000, you could access $40,000.
The new mortgage pays out the existing mortgage of $280,000. Once in place the lawyer will release the equity available to you. The equity can be used however you wish.
Is now the right time for refinancing your mortgage to access some equity? For other information about refinancing read this: https://www.mortgagetailors.com/is-it-time-to-refinance