Mortgage Refinancing in Oshawa
Homes in Oshawa have increased significantly in value over the last few years and as a result, many homeowners have added equity to their homes. But to make use of home equity, a mortgage tool is required. One such tool is mortgage refinancing, which you can do through your Oshawa mortgage broker.
What exactly is mortgage refinancing?
Mortgage refinancing is when you decide to break your current mortgage in order to get a new one. Often times, homeowners use this strategy when interest rates have fallen, but sometimes they use this strategy so that they can access some of their home equity in the form of cash. When mortgage refinancing is done to access home equity, the new mortgage will be for the value of the current mortgage plus the amount of cash that was paid out to the homeowner.
How much cash can I get when I refinance my mortgage?
Most lenders will let you borrow up to 80% of your home equity. So say that your home is valued at $500,000 and you still owe $200,000 on it. That means that you have $300,000 in home equity. If your lender is willing to let you borrow 80% of this, that means you can borrow up to $240,000 in cash when you refinance your mortgage.
What does it cost to refinance my mortgage?
When you refinance your mortgage in Oshawa, there are a few costs that you should be aware of. For starters, you will most likely have to pay a financial penalty for breaking your first mortgage. The amount you will have to pay will depend on how close you are to your renewal date – the closer you are, the lower the financial penalty generally is. Additionally, you may have to pay a fee to have your home appraised – particularly if you wish to borrow a large sum against the equity.
Nevertheless, even with these charges, refinancing your home can save you a lot of money. Particularly when compared to how much you would have to pay in interest if you were to opt for another type of loan.
Contact 1ONEFUND Financial today!
Whether you wish to refinance your mortgage to get cash to pay for a business venture, home renovation, or to consolidate your high interest debt, we can help. Contact 1ONEFUND Financial today for more information and to speak with one of our Oshawa mortgage agents.Mortgage Refinancing