Refinancing Your Mortgage with Home Equity
MORTGAGE REFINANCING 101
With spring just around the corner, you might be thinking about renovating the house, sprucing up the backyard, or even purchasing your first cottage. Refinancing your mortgage may allow you to find the money that you need for these aspirations.
The first thing that you have to consider is how much equity has built up in your home since you started paying down your mortgage. Your home equity – your home’s value minus the balance of your mortgage – is available for you to withdraw and invest in a number of ways, including home renovations, additional real estate, post-secondary education, and much more. Has the property value increased? Decreased? You can obtain a realistic figure by getting a market evaluation of your home. Multiplying your current market value by 80% should give you an idea of how much you would be able to borrow for your new project.
The second thing is to look at different options when it comes to realizing your goals and every individual situation is different. Some choices that a person can look at are:
a new mortgage (the amount of your existing balance plus the amount that you would like to borrow);
a home equity line of credit;
or a combination of a mortgage and line of credit.
The third step would be to sit down with a mortgage specialist and assess your different needs and that is why we are here to help you answer these important questions. So contact us today and we will help you come up with the best strategy for your lifestyle.
Do you have questions about refinancing your mortgage? Give us a call today at (306) 244-7755 or visit our website at mortgagenowinc.ca
