The 5 Essential Tips on Home Refinancing

By: raqs

True to form, an expert on Toronto Home Refinancing suggests that it is a great time for home owners to refinance. Through constant vigilance and effort, There's a good chance that there's a way out there for many homeowners to qualify for today's record-low rates. Here are top 5 reminders you should remember when seeking refinancing:
1. Research

Nowadays, trends show that there could be a big difference on the deals and loans that financing institutions offer. Doing your research in vital in getting the best loan that suits you perfectly. According to an Oshawa Debt Consolidation company, there’s more to research on than just interest rates. It’s also important to read reviews on a specific bank, lender, or insurance company compared to another. You should also check with lenders in your area, and ask friends and relatives where they got their mortgages and whether they'd recommend their lender.

2. Calculate the costs

Refinancing, despite the low rates, is not for everyone, according to a Mortgage Renewal Oshawa company. If you’re already enjoying a mortgage loan with low rates, refinancing might not be a wise idea as reopening a loan can cost you money, and a lot of it. A good rule of thumb, as said by director of, Erin Lantz, is: “Refinance only if you can cut your mortgage rate by 0.5 percentage points or more from what you're paying.”

3. No such thing as “No-closing-cost” deals

A Home Refinancing Toronto company says that most financial lenders find a way to charge you the expenses one way or another. It is understandable, they themselves are trying to keep the industry afloat, and you should do your part to. It’s not that big a sacrifice though; most of these expenses are not beyond 2% of your total mortgage loan. All you have to make sure of is that you understand these costs and what they are actually for by asking.

4. Try the “cash-in” refinancing

What’s “cash-in” refinancing? As defined by a Toronto Mortgage Refinancing, that's when homeowners swap existing loans for smaller mortgages instead of bigger ones, bringing cash to the closing table to make up the difference. Hence the term "cash-in."Lantz says cash-in deals allow consumers whose property values have plummeted during the housing bust to increase their home equity to 20%, the minimum that many refinancing deals require."If you can bring a little cash to the table and push your equity up, people who otherwise couldn't qualify can take advantage of today's low rates," Lantz says.

5. Have your bank, lock-in your mortgage rates

The bottom line for this is that you make your lender accountable for the rate commitment they are making. Most lenders will send you a "rate-lock sheet" by fax or email upon request, confirming the mortgage rate you're getting and spelling out when the rate lock expires.

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