Thinking about refinancing your mortgage? Is 2019 the year for you?
Is this a good year to refinance your mortgage? You may be thinking this is a great year to refinance your mortgage with record-breaking low-interest rates but before deciding consider some other factors that you will have to keep in mind.
You will have to pass a stress test that the government implemented in 2018 to prove you can afford payments at a qualifying interest rate but keep in mind it is going to be higher than the actual rate in your mortgage contract.
Refinancing and renewing your mortgage is completely different, to be put simply, refinancing would be like signing up for a new mortgage!
Interest rates may not be low enough to cover all the hidden costs. Most financial institutions may often attach other fees, penalties or closing costs.
If you want to take advantage of your higher credit score or your increased income thinking about refinancing your mortgage this year could mean lower mortgage payments!
Switching from a variable loan to a fixed loan is also an option, but be careful, banks can add legal fees and penalties of three months
You can also consider consolidating your debt.
Have your circumstances changed? Do you have a stronger credit score? Has your income increased?
There’s a lot to consider when thinking about refinancing your mortgage! Consider the governments stress test, interest rates, hidden fees, changed circumstances, variable or fixed loans, and consolidated debt.
We can help you with any questions or concerns you have with refinancing your mortgage.
Call us Today! Sutton Group Realty Systems InC.
905-896-3333 / 416-896-3333