Every time you pay off and substitute your current mortgage for a new one, you are refinancing your mortgage. Your new mortgage can have different terms. And the interest rate may change.
Refinancing is not the same as obtaining a second mortgage. A second mortgage is a separate mortgage you take out on the same property. The terms may be different from your first mortgage and the interest rate may be higher.
When to refinance
You may want to refinance your mortgage when or if:
- Interest rates go down: Interest rates can change weekly. You want the best rate you can get, while keeping the cost of changes as low as possible. When interest rates drop, you may want to consider an adjustable or variable rate mortgage. Short-term homeowners often save by paying lower interest rates now.
- Your credit score improves: As you make payments, your credit score improves. As a result, lower interest rates may be available to you, decreasing your monthly payments. A lower rate could save you thousands of dollars a year. You can check out online mortgage calculators to see how much.
- You get a shorter loan term: When interest rates drop, you may want to consider a mortgage with a shorter term. Your monthly payments will be similar, but you could pay off your mortgage quicker. That can save you interest over the life of the loan.
- You lock in a fixed rate: Adjustable or variable rate mortgages can offer lower rates than fixed rate mortgages. But as interest rates rise, so do the rates you pay for your mortgage. Switching from a variable to fixed rate mortgage can lock in a lower rate. It allows you to enjoy the comfort and ease of a stable interest rate. If you are risk adverse or predict that interest rates will rise significantly, this may be the option for you.
To refinance or not?
Refinancing can be financially smart -- your savings typically outweigh any fees involved. Be aware that many of the same closing costs you paid when you bought the home, may apply when you refinance. This could include title insurance, registration and legal fees. It's something to think about in deciding whether or not to refinance.
Whatever the reason for your refinance, we can ensure the process is quick, smooth and as enjoyable as possible. Our multiple offices and client-friendly 7-day a week opening hours give you the freedom to complete the transaction at a time and place convenient for you.
Our simplified yet thorough process follows the same pattern for all real estate transactions. It’s designed to be convenient for our clients (you!) and to allow us to work effectively with no wasted time.
- Pick up the phone and call us for a free quote, or pop into one of our offices.
- We will take some basic details and provide you with an all-inclusive quote covering our flat rate legal fee, all third party fees and taxes.
- There are no hidden fees or extras; your quote is all-inclusive.
- We will walk you through the process from A to Z and keep you up to date via email and phone. The refinancing process requires (amongst other work) title searches and reviews, the purchase of title insurance, transferring of funds and the preparation, review and signing of closing documents. We will set a date with you for you to come into one of our conveniently located offices to sign your closing documents or we can send someone to meet with you at your home or office. We’re open 7 days a week with long hours, so you can choose a time that works with your schedule.
- We will advise you of any next steps and let you know when your refinance is complete. Congratulations, you’ve completed your mortgage refinance! Wasn’t that easy?