refinancing & renewals

Mortgage Refinancing Services at Kal-Mor

The prospect of purchasing and financing a home can be daunting to say the least, especially for new home buyers or those who have poor credit. After all, it is quite a big investment. For those who are already locked into a mortgage that no longer fits their financial plan, it is crucial to explore the idea of refinancing your home. Refinancing is a fantastic way through which you can save money and also lower your interest payments, regardless of your credit. We understand how easy it is to sit idly, as renewing a mortgage can sound like a tricky process. However, you’ve come to the right place. Our dedicated team of mortgage professionals have over 45+ years of combined experience helping clients save thousands by refinancing their homes.

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So, What Does Refinancing Mean?

Refinancing your mortgage means taking out a new loan that has different terms to pay off the original mortgage. Essentially, this means that you get rid of the original lease by paying it off through the new loan. You can then pay off the new loan. When you refinance a mortgage, you are performing a complete overhaul, so you do not have to agree to a loan that has similar terms to your old one. If you initially went for a fixed rate, you have the total freedom of opting for any other kind of mortgage loan, such as a variable or floating rate.

Reasons to Refinance Your Mortgage

Having access to a lower interest rate is not the only reason to renew your mortgage. Refinancing mortgages can also be used in order to access the equity in your house and also to consolidate your debts.

1. Getting a lower interest rate

Refinancing to get a lower interest rate saves you both time and money. However, this depends on the prepayment penalty plus the size of the outstanding mortgage. If you hold the variable rate mortgage, you may have to pay a penalty of 3 months interest. On the other hand, if you own a fixed-rate mortgage, you could pay the greater of the three months interest or IRD, the interest rate differential penalty. But don’t let these penalties deter you. Our team at Kal-Mor will clearly present you with your options so you can see which suits your requirements the best.

2. Accessing the equity in your home

Once we help you refinance your mortgage, you might be able to access the equity in your house. You may also have the potential to access approximately 80% of your home’s value. This could mean extra cash for investment opportunities, house renovations, or any other expenses that may have come up. There are numerous ways through which you can access this equity, which includes breaking the mortgage, taking on a home equity line of credit, or simply blending and extending your lease with the current lender. Whichever route you take, our team will always be on your side, helping you make the correct decisions.

3. Refinancing to consolidate debt

If you have enough equity in your house, you may be able to use the built up equity in your home to pay high interest debt through our mortgage refinancing services. For instance, if you have numerous outstanding debts, such as a car loan, credit card bills, or a line of credit, you might be able to consolidate the debt through the mortgage refinance options available to you at Kal-Mor. Call us today at 250-549-3250 to explore your options.