What Part Do Credit Scores Play in Mortgage Refinancing?

mortgage refinancingWhen it comes to mortgage refinancing, your credit score plays an important part. If you’re not sure what your credit score is right now you can get a free report here. The best thing you can do is take control of your credit; he can’t fix it if you don’t know what’s wrong! Working with one of our Toronto mortgage brokers you’ll be able to find out what your credit score is, how it’s going to affect your chances, what mortgage refinancing lenders are looking for. Why let your credit score hold you back if you don’t have to?

Why Is Your Credit Score Important?

Your credit score is a reflection of the kind of borrower you are – at least that’s what the lenders think. While they may be right or wrong, your credit report and your credit score do have a lot to say about you. Whether it’s late payments, slow payments, or no payments, you have your credit score for reason. Even if you have equity in your home bad credit score could get you a lot of trouble, but what is good credit, and what is bad credit?

What Does Good Credit Look like?

A good or “desirable” credit score is usually above 680, the further you are over 700 the better off you’re going to be. A high credit score means you’re going to save on interest rates, have much better mortgage terms, and actually be treated better by lender. But on the flipside anywhere below 650 you could run into trouble.

What Does Bad Credit Look like?

Bad credit is under 620 – though some say 580. It really depends on the lender you’re working with that’s why you need to work with one of our Toronto mortgage brokers. We understand which lenders are a little pickier than others.

If you do have a bad credit score, it’s recommended that you work on your credit before you apply for any kind of financing or refinancing. This could mean debt consolidation, correcting erroneous or false reports on your credit report, or paying off your bills one by one on your own. Sometimes though this just doesn’t work, each situation is going to be different. If you’re not sure what to do give us a call, we’ll be able to help you come to the right decision.

What Can You Do about It?

You’re never going to know what’s wrong as you look into it – and that means checking out your credit report. You sure you’re able to get free report, this won’t include your credit score. It’ll just show you what’s on your credit report, but not your credit score. If you want your credit score you’re going to have to get a service from Experian or Trans Union; you can usually get a one month free trial it is just to check out your score.

When you work with us, we’ll help you look over your credit report and figure out what you can improve before you apply for mortgage refinancing.

Is 2013 the Right Time for Mortgage Refinancing?

mortgage refinancingInterest rates never been lower than they are right now, some banks are even offering super low mortgage rates at 2.75%; unless you’re working with the right Toronto mortgage broker, like us, you’ll never know if now is the right time to refinance or not! Here were going break down what mortgage refinancing is – like why you should consider refinancing, if refinancing is a good idea for you, if you’re eligible, and how much it’s going to cost. After all, if it’s not a good idea why do it? When you work with us, will help you shop for the best loan – we’ll be your friend in the mortgage business!

Who Should Consider Refinancing?

Mortgage refinancing can help a lot of people – but sometimes is just not right for you! It’s great if:

  • Your monthly payments are unmanageable
  • Your interest rates are sky high
  • Your mortgage term has just come due

There are of course other situations where people can benefit, but these are mainly the most common reasons.

High monthly payments don’t help anyone but the lender! Each payment you make goes more and more towards the interest, but the principle, or the amount that you originally borrowed, goes unpaid. It’s a vicious cycle – and with interest racking up more and more every month, it’s easy to get upside down on your mortgage.

Interest rates are currently between 2.75% and 4%; if you haven’t refinanced in the last couple years, you might be surprised how low you could get it! Working with one of our Canada mortgage brokers, you’ll be able to save big on both your monthly and interest payments!

If you’ve recently received your mortgage renewal slip in the mail, you may have a chance to refinance. We’ll help you explore your options here, from getting your monthly payments down, bringing down high interest rates, and making sure you get a better deal this time around.

When Is Mortgage Refinancing a Bad Idea?

Mortgage refinancing isn’t always a great idea. Sometimes, it’s better just opt out. If you have less than 18 months to pay off your mortgage and your mortgage payments are manageable – don’t do it! Whenever you refinance you have to pay closing fees all over again, you lengthen the life of your mortgage, and it’s just probably not a good idea in general.

Are You Eligible for Mortgage Refinancing?

Just about everyone is eligible for mortgage refinancing – but it never hurts to find out your options for sure, right? Call us today to speak with one of our Toronto mortgage brokers about your options. We’ll help you understand the difference between mortgage refinancing, mortgage renewal, or if you should just go in a whole other direction. After all, you’ve been working hard all these years to rack up all that equity in your home, making your payments on time, isn’t it time you got ahead? Of course it is! Visit our mortgage refinancing page today, and see how you can save.

Why is Mortgage Refinancing so Expensive?

mortgage refinancing in TorontoIf you don’t know what you’re doing, mortgage refinancing can be awfully expensive – but when you work with us as your Toronto mortgage broker you’re going to get all the help that you need to get the best mortgage rates. Depending on when you’re trying to refinance, why you’re trying to refinance and what lender you work with you’re going to get drastically different results. Let’s take a quick look and see what affects the rate you’re getting and how you can make the most of your unique financial situation.

When Did You Get Your Mortgage?

The first thing you need to ask your self is when did you open your mortgage? If you just got a mortgage a week ago and already want to refinance, you’re not going to get much out of it. You’ve already paid thousands of dollars to close your loan, you’re going to have to pay those thousands of dollars to refinance again. Some lenders will give you a cheap deal to refinance, but you’re going to want to ask yourself if that 1% interest rate jump is really going to save you x amount over the next 10 years of paying off your mortgage. Mortgage refinancing is great, but only when you’re doing it when you should.

Why Do You Want to Refinance?

Another big question you’ll want to ask yourself is why do you want to refinance? Are you overloaded each month, do you have years of high interest mortgage payments ahead of you? Working with one of our Canada mortgage brokers we’ll be able to help you figure out if your reasons are the right reasons and if this really is the right way for you to go. The last thing you want to do is end up with another mortgage that you can’t pay and isn’t doing anything for you.

What Deal is Your Lender Offering?

Almost anywhere you look online you’re going to see the same refrain: “It never hurts to comparison shop.” Sometimes your lender is going to give you a fantastic deal, but it never hurts to work with us as your Toronto mortgage broker. You’ll want to go to your lender and see what they’re offering; if they send you a form to re-up your loan after your term expires, now is the time to see what else is out there.

We’ll be able to work on your behalf to help you get the mortgage that’s right for you. Every point of interest you have to pay each month is money that’s not going back to paying off your mortgage. You want to make sure that you’re paying things off as quickly as possible, and when you work with us we’ll help you do that. If you’re tired of paying too much each month and want to start paying down your mortgage, it’s time to consider mortgage refinancing. Give us a call today and see what the best Toronto mortgage brokers can do for you.

When is the Right Time for Mortgage Refinancing?

Sometimes it’s just not the right time to refinance your mortgage, but how do you know when it’s the right time? Working with a Toronto mortgage broker like us will help you have a sense of if and when it’s in your best interest to go with a refinance. From understanding interest rates, monthly payments, where you are with your equity and if debt consolidation is right for you – you’ll finally know. There are so many factors that go into the process, and just because rates are low doesn’t mean you have to refinance right now.

What’s Your Credit Score?

Like virtually anything else to do with mortgages, you need a keen understanding of your credit situation before you move forward. You have to know that your credit score is above or below 600. A score of 550 and below is just awful. 600 is considered okay, but not great, while a score of 700 is great and you’ll be able to qualify for the best deal. You’ll want to be very careful about how you proceed – the higher your score the more bargaining power you’ll have on your own; it never hurts to have a little help though! Working with us as your Toronto mortgage broker we can help you save big.

Are You Trying to Consolidate Debts?

Why are you looking into mortgage refinancing? Are you thinking about consolidating your debts with a lump payment? If so, you’ll want to know that the debt consolidation company you’re working with is on the up and up. Research them, talk to your mortgage lender ahead of time and know that they’re amenable to a change in your mortgage. Some may not, and if so you’ll really need our help to move forward.

How Much Equity do You Have?

You’re going to want to have a fair bit of equity – it can be hard trying to bargain when you are underwater on your mortgage. But even if you are in trouble, we can help!

What are Your Monthly Payments Like?

Are you thinking about mortgage refinancing because your monthly payments are too high? Mortgage refinancing can bring down the cost of your monthly payments, but only if it’s done right. If you get a bad refi you can easily end up paying more in a short time. Don’t just trust anyone to handle your refinance.

What is Your Interest Rate?

A high interest rate means a higher monthly payment and more money going to interest, not the principal. Principal is what you actually owe, and if you want to be able to have lower payments and pay off your mortgage quickly, you need a lower interest rate. Mortgage refinancing will help you bring down your interest rate, lower your monthly payments and pay off your mortgage sooner. Call us today and see how we can help you save – after all you’ve worked hard for your home, isn’t it time you’ve finally paid it off?

Visit our mortgage refinancing page today to learn more!

Could You Benefit From Mortgage Refinancing?

mortgage refinancingWhen you work with us as your Canada mortgage broker you get all the tools you need to get a mortgage refinancing you can live with. It’s important that your terms are structured for now and later, giving you a chance to have savings now and being able to repay your mortgage must faster than you are now. Don’t get trapped with a bad refinanced mortgage that isn’t working for you – get the one that helps you move forward and saves you money! You should always be able to see the benefits right off the bat, and that’s why you need our help as your Toronto mortgage broker. It’s time to start saving today.

Mortgage Refinancing Saves You Money

Everyone can save a little money on their mortgage, but mortgage refinancing with the right lender allows you to receive the maximum benefit with the minimum input. You don’t want to have to spend thousands of extra dollars over the life of your loan to interest payments that you don’t HAVE to make – with the right refinancing plan you can make virtually any mortgage manageable. Let us help you as Toronto mortgage brokers get the mortgage that’s right for you.

How Expensive is it?

If it’s costing you more than you’re paying right now, you’re doing it wrong. Mortgage refinancing should always save you money – if it’s not you’re going to want to find someone else to do business with. The whole point of refinancing your mortgage should be to save lots of money on your monthly payments and in your interest rate – if you’re not saving you’re spending. No one should have to pay more to get refinanced, and when you work with us you won’t have to. We’ll work hard so you don’t have to, that’s why you always want to work with an experienced Canada mortgage broker like us.

Is Mortgage Refinancing Right for You?

It could be, it just depends on your situation. If you’ve recently refinanced or originated your loan, it may not be a good time. If you have less than 18 months to a year before your home is paid off, you may not see a real benefit from refinancing. Whatever you do, you’re going to want to know that you’re getting the best deal; let us work for you and help you get the mortgage that you can afford.

We Can Get You the Best Rate

When you work with us to get a mortgage refinancing deal that will help you save money, you get all the help you need to know that this really is the right choice for YOU. We understand that high pressure banks can talk you into virtually anything, but we work for you, not the banks. We’ll be here to help you understand every aspect of the process, from the application process to finding the best interest rate – you’ll always have a friend in the mortgage business. Call today and see what a Canada mortgage broker can do for you!

Can Refinancing Too Much Hurt Your Credit?

mortgage refinancingIt’s easy to think that you can ALWAYS get the better deal, but if you take out too many second mortgages in too short a time or just refinance your home in general you could end up hurting your credit. Borrowing shows you’re not liquid, even if you repay quickly. The last thing you want to look like is a “bad borrower” – so only refinance when you absolutely have to. Here we’re going to talk about how it can ruin your credit and what you can do to get the right second mortgage off the bat the first time.

Hard Pulls Ding Your Credit

Each time a lender pulls your credit report, known as a “hard pull”, your credit gets dinged. So if you apply to a lender every month for the next 12 months trying to find the “right” deal, you could easily end up with a huge point loss. You have to time these things a certain way and you always want to make sure that the lender you’re applying for is really going to give you a good deal. A difference of half a percent is never going to be worth the cost to your credit to pursue.

Apply to Many in a Short Period to Avoid Dings

If you apply to 20 lenders in a 2 week period, you’ll only be dinged for the first one. After that first hard pull you’ll have 14 days of ding-free time so it’s always great to start applying to everyone at the same time. Like mentioned before, you don’t want to apply for a first or second mortgage (or any other financing for that matter) unless it looks like a good deal. Will you really be able to get a better deal by going down 2%? 1%?

Saving 2% Isn’t Worth Thousands in Closing Costs

Nope, it’s just not. Think about it, you might save $1,000 over the next 5 years of your mortgage, but if you have to pay $5,000 to close the mortgage what was the point in that? When you refinance you’re going to always want to get a better deal than you’re getting right now. You don’t ever, ever, ever want to pay more. Look at the savings on the whole and from top to bottom to get the best deal.

Use Mortgage Calculators to Know More

A mortgage calculator and a mortgage broker can help you really figure out where you’re at. If you’re not sure how much you’re going to really save from one mortgage to another, use a calculator. Not sure if you’re getting the best rate? Talk to a broker. Just not sure in general? Talk to a financial advisor. Don’t talk to a bank for mortgage advice if you’re borrowing – it’s their mission in live to get you to do business with them whether it’s in your best or not. 

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