Many homeowners decide they need to borrow equity in their home to meet financial or life goals.

The most common reason for refinancing include consolidating expensive credit card and personal line of credit debt into a new mortgage payment at a much lower rate.

Other times a refinance will be used to pay for renovations, get equity for the down payment on a vacation or rental home or to get a lower interest rate sooner than if you waited for renewal.

There are several ways to refinance your home. You can break your existing mortgage by paying a penalty to your lender and getting a new mortgage. Or you can leave your existing mortgage in place and get a line of credit or a second mortgage in second position.

If you do pay a penalty to break your mortgage the penalty, as well as legal fees, can sometimes be added to your new mortgage balance. Sometimes it makes sense to break your mortgage and pay a penalty to get a better rate in the long run. We will tell you if it makes sense to break your mortgage or not.

Mortgage rules are always changing and the newest rules only allow refinances to 80 percent of the value of your home.

We’ll be happy to help you determine your best option.

Email or phone 780.721.4879 to find out what makes sense.