3 Ways A Mortgage Broker Can Help You Buy Your Dream Edmonton Home
Thinking of purchasing a summer home, vacation property, or income-generating duplex? If you're a homeowner who has built up a good amount of equity in your current home, here are three ways a mortgage broker can help you turn your dream into a reality.
1. Mortgage Refinancing
The first way that a mortgage broker can help you purchase your dream home is through mortgage refinancing. Refinancing replaces your existing mortgage with a new home loan carrying a lower interest rate and a longer repayment term (up to 30 years). This allows you to access some of the equity in your current home, which you can use to purchase an income property or a second home. Furthermore, the lower monthly payments will leave you with more room in your budget to complete any improvements on your new property.
2. Second Mortgage
The second way that a mortgage broker can help you own your dream home is by helping you obtain a second mortgage. A second mortgage provides you with a lump sum of money in addition to your current home loan. A second mortgage is a good solution for those who only need a small amount of cash for a short period of time, as the interest rates on second mortgages tend to be higher than those on primary mortgages. Your mortgage broker will assess your current financial situation and help you decide whether a second mortgage is the right choice for you.
3. Home Equity Line of Credit
If you have a significant amount of equity in your current home, a mortgage broker can help you convert up to 80 percent of that equity into cash, which you may then use to make a down payment on a new home. A HELOC may be a more economical way to obtain funds than refinancing or obtaining a second mortgage, as you can choose to access as little or as much cash as you need, when you need it. Additionally, you won't have to pay any interest on the funds you haven't drawn.
Whether through mortgage refinancing, a second mortgage, or a home equity line of credit, a mortgage broker can help you obtain the home financing you need. Get in touch with a mortgage broker today to discuss your financial goals and devise a plan to purchase your dream home.Request Mortgage Info