Refinancing

Refinancing your mortgage on your current home is like getting a new mortgage - You are borrowing money at current mortgage interest rates then added on to your mortgage.

Refinancing Your Existing Mortgage

• When you refinance you "break" your existing mortgage contract to take advantage of lower rates.
• You can change the terms and options of your mortgage.
• For example:
• Today you have a $100,000 mortgage for 2 more years at 8%
• You can refinance the mortgage for $100,000 for 5 years at 5.5%, taking advantage of the lower interest rate.
• There may be a penalty involved when refinancing - You will want to weigh the cost of the penalty against the benefit of the lower rate.
  
• To get a better idea of what your new monthly payment would be, use our Mortgage Comparison Calculator

Equity Take-out

• You can borrow against the equity in your home and use the money for renovations, investments, etc.
  
• An Equity Take-out could be a new mortgage OR result in a refinanced mortgage, where your total mortgage amount increases.
  
• To calculate your equity:
• Take your current property value minus all outstanding debt.
• For example: $200,000 Property Value - $80,000 Mortgage = $120,000 Equity
• Most Lenders allow you to refinance up to 90%, however the mortgage will require mortgage insurance.

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