Debts / Documents / Mortgage Renewal / Qualifying / Rates & Terms / Refinance / Rental Properties / Variable Interest Rates

Refinancing your mortgage

A REFINANCE is when a borrower pays out an existing mortgage with a new mortgage. People who refinance tend to do so to get a lower interest rate, lower their payments or to take cash out using equity in their home. You may be doing this at the renewal date when the mortgage is fully open or you may be breaking the existing mortgage term early in order to make changes to the mortgage.

We publish the best rates available on our website and receive a large number of calls from people asking how they can benefit from our low rates. First question we always ask is “will you have a payout penalty to break your existing term?” Most often they do know they will have a penalty but don’t know what that amount will be. Secondly, after determining what the client is specifically looking to do, we suggest they ask their existing lender 4 key questions:


  • What is the payout penalty if you take your mortgage to a different lender?
  • What is the payout penalty if you come back to the existing lender for a refinance at today’s best rates?
  • What is the existing lenders best rate for the term you are looking for?
  • What BLENDED RATE would the existing lender offer if you choose to refinance with them while avoiding payment of the payout penalty?


The answers to the above questions will help the Mortgage Girls develop a comparison for you to ensure it really is in your best interest to refinance your mortgage at this time.

What kind of costs can you expect when refinancing? Most of the time, you simply have to pay for the appraisal to confirm your home value and the legal fees for changing lenders, that is about $1000 give or take. We also have access to some lenders who will pay all the costs for you to move your mortgage to them.

In terms of qualifying for a refinance, it is pretty much like a purchase with a little less documentation. You will have to provide income confirmation to show you can support the payments,  as well as confirm your payment history on your existing mortgage and property taxes.

As always, if you have any mortgage related questions please do not hesitate to contact the Martene the MortgageGirl.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s