Common Obstacles Homeowners Face When Refinancing Their Mortgage
With fluctuating market rates, many homeowners look to restructure their existing mortgage plan and seek mortgage refinancing to lower their interest rate. While mortgage refinancing can help you save a ton of money, it can be difficult to obtain if you are unaware of the possible obstacles and frequent mistakes that borrowers make. The lack of knowledge could harm your application process and ruin your chance of refinancing.
To avoid issues that could derail your mortgage refinancing, Angela Milosevic has listed three common obstacles homeowners face when refinancing their mortgage and solutions to overcome them.
1. Loss of employment.
A stable job proves to lenders that you have adequate income to cover your mortgage refinancing. However, without proof of employment, lenders will not approve your refinance. To get approved, you need to maintain constant, steady employment. If you have recently lost work, find new and similar employment before thinking about refinancing.
2. Not considering the cost of refinancing.
Clients aren’t always aware of the refinancing costs, which usually include legal fees and pre-payment penalties, along with the fees for registration and discharge. It is essential to consider all these costs. Alternatively, you can make sure it’s the right time to refinance by consulting a mortgage broker or use free mortgage calculation tools.
3. Consolidating debt while refinancing.
Consolidating debt is a common reason to refinance. However, this can put your home at risk. If your payments are in default, your house becomes collateral and may be seized by a lender or bank. Therefore when consolidating debt, it is essential to make all your payments on time. You can also work with a mortgage broker who will help evaluate your financial situation and develop a long-term plan to eliminate your debt.
For all your mortgage refinancing needs, reach out to Angela Milosevic. As a mortgage broker in Cambridge, Ontario, I have been providing clients with the highest standard of mortgage service for over twelve years. My services include home purchases, mortgage refinances for debt consolidation, mortgage refinances for home renovation or investment, mortgages for the self-employed, investment properties, vacation or second home properties, mortgages for those with past or present credit problems and commercial mortgages.
To learn more about the services that I provide, please click here. If you want to address a mortgage refinancing concern and need the best advice, do not hesitate to contact me. Get in touch with me by clicking here. You can also use my mortgage calculator to find out how much mortgage you can borrow or pay.