Refinancing allows homeowners to borrow more money by using their home equity which helps them cover the current needs.
I’ve created a guide to help your clients understand each detail of mortgage refinancing.
Let’s check them together!
What is Mortgage Refinancing?
It’s about replacing your current mortgage with a new one that has better terms.
To finance home improvements and renovations, unexpected expenses, or other large investments.
To switch to a different type of mortgage that’s right for borrowers at that particular moment (such as from variable to fixed-rate mortgages).
To pay for things or buy another property that matters most to them.
How to Refinance a Mortgage?
Your clients should follow these tips:
Determine why they want to refinance a mortgage.
Review their credit report and credit score.
Compare rates and terms from multiple lenders. They can speak with a mortgage broker about that.
Provide documentation (e.g., income verification, proof of employment, home appraisal, and proof of assets).
Contact me for helping them understand how much they can borrow and what options they have.
In some cases, the ideal time to refinance a mortgage can be at the end of the mortgage term to avoid the prepayment penalty.
If your clients are not sure which mortgage type or rate works best for them, they can consult with a skilled mortgage broker.