Refinancing
Refinance Your Mortgage and Save
If you’re looking for lower monthly payments, access to home equity, or simply a better interest rate, refinancing might be the solution for you. At ZMortgage, we offer tailored refinancing options that can help you reach your financial goals.
Key Benefits of Refinancing:
- Lower Your Payments: Reduce your monthly mortgage payments by locking in a better rate.
- Consolidate Debt: Combine your debts into one payment with a better interest rate.
- Access Equity: Use the equity in your home for other financial needs or investments.
- Shorten Your Term: Pay off your mortgage faster by refinancing into a shorter loan term.
Reasons or benefits to refinance your existing mortgage:
A mortgage refinance occurs when you are looking to break your current mortgage term, and get a new loan with a new term either with a new lender or with the existing lender in place. Clients are able to refinance or access the equity up to 80% of the market value of their home to get additional funds or consolidate debts. Penalties would apply to break your current term and the penalty amount would depend on weather on factors such as current interest rate at environment at the time, and if you were locked into a fixed or variable mortgage rate.
The only time penalties would be fully waived is when you have a fully open term on your existing mortgage term.
1. Getting a lower interest rate
Refinancing to get a lower interest rate can save a lot of money over time, depending on the size of the mortgage and interest rate secured. Typically holding a lower interest rate mortgage would also imply a lower monthly payment. If you hold a variable rate mortgage, then expect to pay a penalty of 3 months interest, and if you hold a fixed rate mortgage expect to pay a penalty of greater of 3 months interest or interest rate differential (IRD).
2. Refinance to consolidate debt
if you have enough equity in your home, you would have the ability to utilize the equity available in your home to pay off high-interest debt through a mortgage refinance. Clients often consolidate high interest rate credit card debt, and other secured debts through a variety of refinance options.
3. Accessing Equity in your home.
By refinancing your mortgage, if you qualify you would be able to access equity in your home up to 80% of market value of your home. A mortgage can be placed in 1st position along with a HELOC (Home Equity line) or 2nd mortgage position. You would keep your existing mortgage in 1st position if you have great terms and do not wish to break the term. HELOC are revolving loans which help clients access equity in an instant, with minimum monthly payments. Second mortgage loans are typically placed for a short term basis and client need to have a clear exit strategy to pay it off in a few years.