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Things to consider before refinancing your Vancouver home or estate

May 20, 2012

Filed under: Burnaby,North Vancouver,Real Estate Market,Richmond,Surrey,Vancouver — Richard Morrison @ 2:57 pm
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Most home owners look to refinancing whenever they feel the need for change in their mortgages. There are many perks that come with refinancing a home in Vancouver, and these are attractive enough to inspire the decision. But before you decide on revising your mortgage terms, before you open that bottle of wine to celebrate, there are a few considerations you need to make first.

 

What is the reason you are refinancing first? Hoping to take advantage of newer, more affordable rates? Or is it because you want greater control over your finances and want to consolidate your debts? Perhaps you feel unsettled because your home equity is just sitting there, not being taken advantage of? Whatever the reason, you have to be sure it is the right one. It needs to have enough gravity because it is not a decision you will have to live with.

 

Are you in good credit health? Your credit worthiness will have a say in the rates you get when you refinance your vancouver home. So in other words, if you’ve been maxing out your credit because you just needed that shiny, shiny new car, you might be disappointed. Refinancing only works when your credit rating is good- It’s the only way you can get better rates than you have now.

 

You also need to get more acquainted with your current mortgage term. There are these horrible things we call prepayment penalties. Popular with some Vancouver home lenders, they are designed to discourage you from refinancing. It’s a hurdle you can scale, but only if you ascertain that the benefits of refinancing outweigh the penalties of deciding to do so in the first place.

There are other factors that you need to consider still. These include the value of your home equity, your Vancouver home estate, the value of your property (for which you may need to get an appraisal), and the balance remaining on your loan. If everything is in support of a refinancing, you can finally open that bottle of wine and embrace the new financial path.

 

Our partners at Verico can certainly help answer all of these questions. Remax and Verico have recently partnered to provide you with free personalized quotes. Below you will find their refinance calculator that will show you exactly what rates you are qualified to obtain. The service is completely free of charge and no obligation and only takes 3 minutes:

 

[gravityform id=1 name=PersonalRate Quote Calculator]

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