Refinance Your Mortgage
Here at Priority Home Loans, we can help you refinance your mortgage.
Refinancing your mortgage means switching your home loan to a different lender, often to secure better interest rates, improved loan features, or access additional funds. When it comes time to renew your existing mortgage, alongside refixing your mortgage, refinancing can be a beneficial option.
Benefits of Mortgage Refinancing:
- Lower Your Monthly Payment: Secure a lower interest rate to free up your monthly budget for other goals or expenses.
- Cash incentive for switching: Obtain a cash incentive for switching banks, which is generally better than what banks offer to retain your business.
- Pay Off Your Loan Sooner: Switch to a shorter loan term (e.g., from 30 years to 15) to build equity faster and save on total interest paid, though your monthly payment may be higher.
- Access Cash with a Cash-Out Refinance: Use the equity you’ve built to get a lump sum of cash for home improvements, debt consolidation, or other major expenses.
- Remove Low Equity Margin (LEM): If you now have at least 20% equity in your home, refinancing may allow you to cancel LEM and reduce your monthly costs.
The Refinancing Process:
The process is similar to your original mortgage application, typically taking 30 to 45 days . It involves checking your credit, documenting your income and assets, a home appraisal, and underwriting before closing on the new loan .
Important Considerations:
- Break fee’s: If your mortgage was started less then 4 years ago, you may face penalties for switching early. This could be in the form of repaying back incentives given to you by the bank, break fee’s calculated on the remaining term, or other fee’s.
- You’re changing lenders: It comes without saying, that shifting to another bank or lender, also means a different login to access your mortgage details, a different bank account number for payments and a slightly different process.
- Break-Even Point: Calculate how long it will take for your monthly interest rate savings to cover any costs of refinancing to ensure it’s a smart financial move.
Get the best possible mortgage structure for you
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