Is it Time to Refinance with a Second Mortgage?

2nd mortgageIf you’re thinking about refinancing with a second mortgage, now’s the time to talk to one of our Canada mortgage brokers. Trying to refinance on your own you’re going to come up against different lenders with different things to offer, but we’ll help you find the deal that’s right for you. With interest rates at the lowest they’ve been for almost a hundred years, we’ll help you understand which lender is offering the best deal and to know if now is the right time for you to refinance.

What is Refinancing, Anyway?

Refinancing is where you change the way your loan works or you get a second mortgage on your home to pay off your bills. Some people are able to refinance their first mortgages to a lower rate or with a lower monthly payment – others need to take the equity in their home and exchange it for cash.

If you’re trying to pay off a bulk of credit cards for example, a large lump sum payment for less than you owe might be accepted to clear the debt. You’ll pay 75% of the bills all up front, then all you have to worry about is paying back your mortgage at a 4% interest rate. This can save you big over the long term, but only if you do it right.

Why Are Lower Interest Rates Important?

Every point in interest that you have to pay is another thousand dollars that your lender earns as a profit. There’s nothing wrong with making a little profit off loaning money, but you’re always going to want to make sure that you’re getting the best rate. When you work with one of our Toronto mortgage brokers we’ll help you understand how much you can save with different lenders, we’ll help you understand all of your options.

Can You Afford to Refinance?

You need to have a certain level of equity in your home before you think about getting a second mortgage or a home equity loan. If you don’t know how much equity you hold, call your lender and have a chat. You can also find out by looking at your latest monthly statement. The more equity you have free in your home the better off you’re going to be.

Is it Right for You?

If you’re being swallowed up by your bills and you want a way to get on the road to being debt free, refinancing with a second mortgage could be the right choice for you.

It’s important to note that people who get consumer credit counseling while in the process of refinancing and consolidating their debts are much more successful with the process. If you’re looking for help to get your mortgage under control and move on with your life, give us a call. We’re Toronto mortgage brokers and we understand what you need to do to get the best rate on your next mortgage. Contact us today and see what we can do for you.