REFINANCE YOUR HOME
If you have home equity then refinancing may make sense.
Christmas has passed and the bills are a little larger than you anticipated. The new year renovation project or that tropical vacation you were considering, to break up the winter, is now looking more like a dream than a reality. At various times we could all use some extra cash flow, but it is not always easy to come up with.
Refinancing a home loan essentially means reapplying for a new mortgage loan and renewing the terms of your mortgage agreement.
If you have built equity in your home or property, a refinance could allocate you that extra cash. The valuable equity that you may already have in your home can be used to reduce your interest rate, consolidate high interest credit card debts, lines of credit and other debt.
The general rule around refinancing is typically you can refinance up to 80% of the appraised value of the property. Let`s have a look at the math.
With the value of your home at 400,000 and your current remaining mortgage balance at 275,000, the calculations would look like this. 400,000 x 80% = 320,000 320,000 – 275,000 = 45,000 You could potentially refinance, obtaining 45,000 for your dreams.
Keep in mind that every situation is different, the best way to get a clear picture of your details is to give us a call for your free no obligation review of your mortgage requirements. We can let you know very quickly if this is a viable option for you.
Don`t let the little things slow you down – get your equity working for you today!