Is Now The Right Time To Refinance Your Fort Mcmurray Home Mortgage

Mortgage refinancing can be a great way to reduce your monthly mortgage payments and pay off your home loan faster, but there are times when refinancing isn't the best idea. Below are a few things to consider when deciding if now is the right time to refinance.

How Long Are You Planning to Stay in Your Current Home?

The first thing you'll want to consider when thinking about mortgage refinancing your Fort McMurray home is how long you plan to stay in your current home. Adjustable-rate mortgages (ARMs) typically carry low interest rates for a set period (5 years, for example), after which time your interest rate adjusts according to the benchmark index rate. This can be financially advantageous to homeowners who only plan to stay in their home for a few years. If you currently have an ARM and plan to stay in your home for the long term, mortgage refinancing will allow you to take advantage of a fixed interest rate for the duration of your term.

How Good is Your Credit?

Your credit history and credit score will affect your ability to get approved for mortgage refinancing. These factors will also determine the interest rate that you'll be able to secure. Prime lenders reserve their best loan products and interest rates for those with near-perfect credit, so you'll want to take some time to review your credit history and correct anything that could affect your being able to qualify for the best possible interest rate.

How Much Equity Do You Have in Your Current Home?

If you have less than 20 percent equity in your home, you'll be required by the Canada Mortgage and Housing Corporation (CMHC) to pay mortgage insurance. Before applying for mortgage refinancing, it's important to consider the cost of mortgage insurance and whether the total cost of your new home loan would save you money over the long term.

Mortgage refinancing for your Fort McMurray home can save you a significant amount of money if it's done at the right time. If it isn't, you could end up paying more for your home than you're currently spending. Our lending specialists can help you decide whether now is the best time for you to refinance. Contact our specialists in Fort McMurray, today to see if mortgage refinancing is right for you.