Should You Refinance With a Second Mortgage?

2nd mortgageHaving a second mortgage or home equity loan can be a real pain, but trying to refinance your mortgage can be even worse. If you’re not sure if you should refinance with your home equity loan, you’re not alone; over half of all Canadians will try to refinance 2 mortgages at the same time within the first 15 years of owning a home. It can happen to just about anybody, and here we’re going to talk about how we can help you as Toronto mortgage brokers to get the best rate. Let’s get started and see if it’s right for you.

Is it Time to Refinance?

You’ll want to first start with the question of whether or not it’s time for you to refinance. If you already have a first and a second mortgage, you may have to deal with sublimation (which is never fun). When you work with one of our Canada mortgage brokers you’ll have someone to help you talk with your lender, someone that can help you find out if your lender will be open to a refinance. Refinancing with a second mortgage is a lot different than refinancing with a first mortgage, so you’ll be in for a wild ride. You’ll want expert help to tackle the unique challenges a refi with a second mortgage can present.

Can You Afford to Refinance?

You need to know if mortgage refinancing is really a feasible option – after all, it’s not for everybody. You’re going to have to hop through some serious hoops to find out if this is really the right way for you to go. Everyone is different, so what’s right for someone else may not be right for you. Talk with us and find out more.

How Much Will it Cost?

Refinancing with a second mortgage will generally cost you closing and origination costs, plus administrative fees. So whatever you paid to close your last mortgage, plus an extension on your mortgage. You may even refinance it so you have less time to pay off your mortgage – which sounds like a bad idea but for some it can work really well.

Expect to pay $5k (this can vary) to refinance, plus whatever changes in monthly payments and interest that are part of the refinance. You’ll want to be very picky about when you choose to refinance your mortgage – after all, you don’t want to leave a long and perilous trail behind you of closing costs, always trying to chase that lowest percentage point.

Let Us Help

When you need to save big on your mortgage, let us help. We’re here every day and we can show you what a Toronto mortgage broker can do for your second mortgage refinance. You may not even have to refinance at all – it just depends on your circumstances. We can’t help you though if we can’t talk to you, so call us today and see the difference that we can make for your second mortgage!