When you take advantage of your existing equity in your home with a new mortgage, that is called refinancing. It is done to let the borrower get access to the increased value of the property without actually selling it. Refinancing can be an excellent way to help invest, improve cash flow, renovations, debt consolidations, and much more!
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What Is Refinancing?
Homeowners refinance their homes for many reasons such as to reduce their monthly payment, invest, improve cash flow, renovations, or take out cash for large purchases. People will refinance when they have equity in their home, which is the difference between what they owe and the value of their house.
What Are The Advantages Of Refinancing?
Your credit score or income are not major factors when it comes to obtaining an approval for a home equity loan. We have helped clients from all walks of life who have experienced bruised credit scores, bankruptcies, and people who have been turned away by their banks or credit unions. These lenders instead focus on the equity you have in your home making the process much more simple than applying for a traditional mortgage. You can get approved to borrow up to 75% of your home appraised value. The rates on these loans can vary depending on the ratio of the loan amount and value of your home and whether this is your first or second mortgage position.
People usually refinance their homes to obtain money for large purchases or investments or to reduce existing debt payments. This is done by taking equity out of the home. But, first, a home appraisal is conducted, and then the lender decides what percentage of that appraisal they are willing to loan. Lastly, the balance owed on the original mortgage is subtracted from the calculation.
Some people use this money to renovate their home, which usually increases its value. Since these people will be making payments towards their mortgage while doing updates to it, they can take out more money as the difference between the appraisal value and the value of their home narrows.
When Can I Refinance My Home?
Homeowners can refinance their home anytime as long as there’s sufficient equity in their home. For those who purchased their home with a very large down payment, you can refinance immediately. Borrowers who have invested 20% or less downpayment, they will need to increase their equity by waiting for their property value to increase and/or their mortgage balance to decrease. An experienced broker can review your situation and make recommendations that suit your needs best.
Unsure If You Should Refinance?
Speak with an expert at Arise Mortgage Corp. Our experienced brokers can help explain the refinancing process to you and ensure you make an informed decision. Mortgage refinancing can be an overwhelming process if you are not familiar with it. We will make sure you have a thorough understanding and go through all of your options with you. Simply fill out the form below, and we will get back to you as soon as possible.
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Home Equity Mortgage
Turning your home equity into money in your pocket is a big part of our business. No matter the uniqueness of your situation, we will work with you to achieve approval within 1 business day.
We help broker commercial mortgages – Purchase, Refinance, or Equity Take Out. We can help find private financing no matter how large the mortgage amount.
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Getting financing on construction is difficult. We make it easier. We’ll help arrange the financing for you to get your project completed. Whether you’re building a new house or a concrete high-rise building, we can help!
As long as there’s sufficient equity in your home, we won’t put much emphasis on your credit, bankruptcy history, foreclosure, tax issues or other financial challenges.
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Bank Turned Away
We have a wide range of lenders that have more relaxed lending guidelines. We offer a higher chance of approval.
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