5 Questions To Ask About Refinancing With A Mortgage Broker
If you plan to stay in your home for the next few years, a mortgage refinance can sound like a good way to lower your monthly payments and create some room in your budget. There are circumstances, however, in which refinancing isn't financially advantageous or even possible. Before you apply for a new loan, here are five questions to ask about refinancing with a mortgage broker in Edmonton.
1. Is There Enough Equity in My Home?
Generally, homeowners need at least 20% equity in their home to qualify for refinancing. This can make obtaining a new loan difficult for people who have recently purchased a home with a minimal down payment. By refinancing with a mortgage broker it can help you determine whether you have enough equity in your home to qualify for a refinance.
2. Should I Switch to a Fixed-Rate Loan?
If you have an interest-only or adjustable-rate mortgage, ask when you refinance with a mortgage broker if you would benefit by switching to a fixed-rate loan. While many homeowners find that their current loan offers the best terms, some borrowers find that fixed-rate loans make better sense financially.
3. What Term Length Should I Choose?
Refinance with a mortgage broker in Edmonton to help you choose a term that best suits your current and long-term financial goals. Some borrowers choose long terms to lower their monthly payments, while others opt for shorter terms with higher payments in order to reduce interest.
4. Is My Credit Good Enough?
When refinancing with a mortgage broker, it is important for you to know and understand your credit score. Generally, higher credit scores qualify for the best mortgage rates. Your mortgage broker will help you secure the best possible rate.
5. What If I have a Second Mortgage?
If you have a second mortgage or a line of credit, and you want to refinance with a mortgage broker, your mortgage broker can still help. They will tell you whether you need to pay off the second mortgage or combine the loans into a single mortgage.
Ready to discuss your home refinancing with a mortgage broker? Contact a mortgage broker in Edmonton for a free, confidential quote, and get all the answers you need at no obligation.Request Mortgage Info