Provided that you have a vacation property or investment property with an older, expensive mortgage, you might consider refinance so you can take advantage of still historically low mortgage rates. Second home comes with its own set of challenges. The one issue in particular issue is refinancing your mortgage. For the past few years have been a good time to refinance their homes because of low interest rates. However, having second home, the issue goes beyond how high or low rates are. There some things you need to be know of when it comes to refinancing a second home.
How much equity do you have?
Real estate columnists Ilyce Glink and Samuel Tamkin focus on equity over interest rates when it comes to refinancing a second home. The past few years is the best time, as far as rates are concerned for existing homeowners. However, you might want to focus on in this situation is equity.
The more equity you have in your home, the easier it will be to refinance. Having equity around 30% may be sufficient to help you get the refinancing you need. If the amount you owe on your home is actually more than the home’s value, we recommend for you to seek professional help. Professionals may help and guide you in terms of home refinancing in Canada even your second home mortgage.
Check with local real estate professionals.
When you consider to refinance a second home, the first thing to do is to check the local mortgage brokers and mortgage bankers. These professionals, may have more experience and knowledge with the real estate in the area. They can also answer your questions better when it comes to specifics on the local market.
Aside from that, it is beneficial to ask friends, family members and even neighbours who live in the vicinity of your second home. The real estate market may be different from region to region, an example home mortgages in Oshawa may have different qualifications compared in Ontario, so it is best to speak with people who are familiar with your area, to even know if a conventional refinance is possible.
“Try not to give out your social security number”.
Part of getting refinancing details involves mortgage lenders pulling your credit report to gauge your expected refinance rate. Doing this a few times in a month may not affect your credit score, but your credit is pulled a number of times over a few months, this could lower your score. A lower credit score affects your chances of getting a good refinancing rate. The best thing to do is to wait until you know you are planning to move forward with the process to have a lender pull your credit report.
When you refinance your second home, it is helpful to keep these tips under write up. Even though, the market looks good, as far as interest rates are concerned, you may not be in the situation to refinance. Be aware of the equity you have in your home, look for trusted advisors in the area if you are interested in refinancing a second home. Do not give out your social security number until you are sure you want to refinance.