Mortgage rates can be fickle and in Canada, they can rise at a moment’s notice. When you are looking to refinance a current mortgage, it is important to learn a few quick tips to be ready when the time is right. By learning just what to do when it comes to mortgage refinancing, being prepared makes all the difference in securing the best loan for your refinancing needs.
Know Your Credit Score
To begin, you must know your credit score. To be able to secure a lower interest rate, you will need to have a good credit score and rating. You can still secure refinancing without good credit, but a quality rating helps you to be able to take on a lower rate. When rates begin to increase, you will be able to receive the lowest option if you have a good credit score.
Know Your Options
Before you can refinance your existing mortgage, you need to know your options. Will you be looking to refinance with a fixed or variable loan? Which option will be better based on your financial needs? Are you trying to pay off the loan quickly or would you rather have a lower monthly payment? Speak to a broker to find out what options you have so that you can make an informed decision. You may find that a smaller loan term will be more beneficial than a long term loan or vice versa.
Different loan types will offer varying interest rates so it is important to know what your options are. Do you qualify for a reverse mortgage? Should you go with a private lender or financial institution? Take time to research your options and learn the various refinancing loan types available to you so that you can get the best deal. A mortgage broker will have all this information at their finger tips and can save you a lot of time and money.
Be Prepared to Wait
If you are not pressed to refinance due to financial reasons, be prepared to wait. You may be better served to continue with your current mortgage loan and wait a few months before going ahead with refinancing, especially if the current rates are higher than what you currently have. To be sure that you are making an informed decision, speak to a reputable broker.
At Mortgage Guys, we can help you secure quality financing for a mortgage refinance. We work with a series of lenders to ensure that we find the best possible interest rate and loan term for your refinancing needs. Contact our office today and we will schedule an appointment to discuss your options, helping you to find a loan type to suit your mortgage needs.