Mortgage Refinancing Solutions Kitchener, Waterloo, ON
Refinancing your mortgage can be an effective way to access some of the equity in your home.
The equity in your house represents the cash value of your house. It is the sum of your original down payment plus principal payments plus market appreciation.
At some point, you might decide that some of this investment can be better used elsewhere. For instance, you might have a different investment opportunity that looks like it has a strong likelihood of exceeding the return that you expect in your house. You might also decide that your equity can be used to reduce debt that is significantly more expensive than current mortgage rates.
A mortgage refinance occurs whenever any of the following occurs:
- dollar amount borrowed is increased
- the existing amortization period is increased
- changes are made to who is on title
A mortgage refinance allows the homeowner to borrow up to 80% of the current market value of their property. However, there can be limits as to the absolute value of the equity being withdrawn.
The equity in your home can be a source of funds that can be used to accomplish other goals.