Refinancing Your First Mortgage
One way is getting a debt consolidation mortgage. What it means is that a lending institution will give you the money needed to pay in full the loans you have other than your house mortgage.
That will increase the amount of your existing mortgage and also give you a chance to lower your interest rate. Another advantage is that you will have to pay only the mortgage rather than pay separate debts.
Note that when you choose this option, you will be closing your current mortgage contract. That can mean additional fees for terminating the contract earlier than the date of maturity.
If you qualify, you can get from a lender as much as 80% of the current value of your property. The lender will also allow you to choose the type of rate – variable or fixed rate.
Refinancing is a preferred approach if you already have determined the amount of money you need. To qualify for this type of loan, borrowers must have 20% or more equity in their homes and their credit score must not be lower than 650.
The mortgage market today is highly competitive, which means you have a chance to get the most favorable terms and conditions. Keep searching for the best deal and let your certified mortgage broker give you more options before deciding.