How does refinancing your mortgage work?
Refinancing is the process of getting a new loan for your home and paying out the old one. You may choose to do this because you want to:
- Take advantage of lower interest rates
- Have a safety net for the future
- Help your kids out with school
- Consolidate debt
- Do home renovations
- Use the money for investment purposes
When you refinance you can get a new mortgage, a line of credit, or a combination of both. There are many different products out there to fit each unique situation.
The process of refinancing is similar to purchasing a house. You'll have to qualify for a new mortgage which means completing an application (you'll need to know your income, debts, and assets) and submitting documents to the chosen lender. Once we have approval and meet the lender conditions, the file is sent on to your lawyer to finalize everything with you.
Are your credit cards leaving you overwhelmed? Credit card debt happens. There's no judgement here. The important thing is to do something about it sooner than later. Refinancing your mortgage to consolidate your debt (credit cards, other loans, etc.) can be the solution you need.
It seems counter-intuitive to replace debt with other debt, but replacing high-interest debt like credit cards with low interest debt like a new mortgage or home equity line of credit (HELOC) makes a lot of sense. Combining your debt in this way gives you one monthly payment at a much lower interest rate. This can free up money for you to put in your savings and breathe a little easier.
When you need a loan, Prompt Financial can be the ideal solution. Prompt partners exclusively with mortgage brokers and offers mortgage loans up to $100,000*. Mortgage brokers know that your current financial needs can impact your long-term goals. With Prompt you can get a better loan so that your finances are under control when the time comes to refinance your home mortgage. This option requires minimal documentation, provides you with the funds within 48 hours of signing the paperwork, and is open so you can pre-pay at any time.
* On approved credit