WHAT SHOULD I DO TO REFINANCE MY MORTGAGE?
The first thing you should do when considering refinancing is to figure out exactly how you will repay the loan. If you are refinancing for home renovations to increase the value of your house, you may use the increased revenue upon selling to repay the loan.
However, if the credit is going to be used for something that would not give monetary returns—like buying a new car, funding an education, or paying down credit card debt—you would have to write on paper how you will repay the loan.
You can talk to your lender to analyze possible options for you. A mortgage broker can help you see even more options that may be available from other lenders. Even if there is no current refinancing deal that would benefit you at the moment, you would at least know what step you need to take next. There might be complicated paperwork from time to time, and an experienced attorney or mortgage broker can help you understand the process better.
When can I refinance my home?
Most banks and lenders will require borrowers to keep their original mortgage for a minimum of 12 months before they refinance. Each lender's terms are different. Therefore, it would be best for the borrower to check all restrictions and details with the lender.
In some situations, it is better to refinance with the original lender, although it is not required. This is so that you and the lender do not need a new title search, property appraisal, etc. Most original lenders will offer a competitive rate to borrowers looking to refinance their mortgage. So it is possible that a better rate can be obtained by staying with the original lender. An experienced and trusted mortgage broker can help you determine whether staying with your original lender is better than going with a different lender.
