MORTGAGE REFINANCE

Have you considered re-financing your home but are under the impression it is all but impossible to refinance in today's economy. While it is more difficult in some situations, mortgage refinancing is more than just possible- it remains a viable financial planning tool for many households. Here is what you need to keep in mind when trying to refinance your mortgage in today's economy:

1. Good Credit! Tighter lending standards are beginning to take a toll so expect to encounter more stringent criteria in order to obtain the best interest rates. However, with interest rates at historic lows, it is still possible to reduce your monthly obligations with mortgage refinancing even without qualifying for "prime" rates.

2. Keep the Paperwork! Not only are banks cracking down on lending standards and requiring better personal documentation in order to obtain a loan, but be prepared to provide documentation on all of your sources of income especially if you’re Self-employed.

3. Know your Neighbourhood! Your neighbour's property values are likely to impact yours. Because banks and other lenders rely heavily upon comparable values for mortgage refinancing, anything that helps or hurts your local neighbourhood or community is likely to help or hurt your property value as well.

4. Shop Small! In prior years it was often easier to do business with the Bank’s but today all that has changed. With the recent crisis in the financial industry, many small Mortgage Companies are actually easier to deal with for mortgages and mortgage refinancing than the Banks. It still makes sense to comparison shop for a refinance before making a final decision since rates and terms may vary. The best way to accomplish this is to deal with a CCM Solutions Mortgage Agent.

5. Understand the impact! Re-financing is like starting over. You’re asking for money again at current Mortgage Interest Rates. Re-financing your mortgage prior to maturity means you’re breaking your agreement and most often there’s a penalty. The trade off between current interest rates and the penalty may be worth the re-finance. Your CCM Solutions Mortgage Agent will help you weigh the cost of the penalty against the benefit of the lower interest rate. You will get a better idea of what your monthly payment will be by using our Mortgage Calculators.