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Your first step should be to explore your mortgage options.

Are you dreaming of a home that perfectly matches your lifestyle, or do you need more space for your growing family? Take the first step and contact us for a complimentary financial analysis to discover how attainable your dream home can be.

As you plan to move from your current home to a new one, it’s essential to assess your mortgage options early. If you need to increase your mortgage, consider the portability of your current mortgage or the possibility of blending your existing rate with the rate for the additional amount needed.

With today’s historically low interest rates, evaluating the benefits of refinancing your mortgage could be worthwhile. While breaking your current mortgage may incur a penalty—calculated as the greater of three months’ interest or the interest rate differential (IRD)—the long-term savings from a new, lower rate could offer significant financial advantages.

YOUR GUIDE TO MORTGAGE REFINANCING

To determine how much home you can afford, consider your income, debts, credit score, current interest rates, and the down payment you're able to make. A pre-approval from a lender can also provide a clearer idea of your price range.

Consider refinancing when interest rates are lower than your current rate, when your credit score has improved significantly, or when you need to access home equity for large expenses. It’s also wise to consider the break-even point — the time it takes for the savings to outweigh the costs.

Refinancing a mortgage comes with various costs, including, but not limited to, application fees, origination fees, appraisal fees, title insurance and search fees, and possibly prepayment penalties. It's important to calculate these costs to understand if refinancing is financially beneficial.

Yes, refinancing can affect your home equity. If you opt for a cash-out refinance, you’re borrowing against your equity, which reduces the overall equity you have in your home. Conversely, if you secure a lower interest rate without withdrawing cash, you may build equity faster by reducing the interest portion of your monthly payments.

Qualification criteria for refinancing typically include a certain level of home equity (usually at least 20%), a good credit score (which can vary by lender), a stable income, and a low debt-to-income ratio. Lenders also consider your payment history on your existing mortgage.