Currently lenders will allow you to refinance up to 80% of an appraised value of your home.
You would still have to qualify with your income for the new mortgage amount and make sure there is enough to cover any related expenses.
Also keep in mind if you are not done your current term with your lender that there may be a penalty for paying out your mortgage with them early. This may be discounted if you stay with the same lender or if not much of your mortgage term left, it could be waived by staying with the same lender.
We would be able to tell you if it is better to refinance with your current bank or to move to a different bank if the new rate is that much better.
The most popular reasons for refinancing are the following:
- Pay out debt
- Pay for renovations
- Take advantage of a better mortgage rate
- Don’t like current lender
- Take out equity and extend amortization for cheaper payments
The long and short of a refinance is your income needs to qualify for the new mortgage amount, and you may only take out equity up to 80% of an appraised value of a home.
You may choose to do a 25, 30 or even a 35 year amortization with select lenders and may choose a variable, fixed or line of credit for your mortgage. If choosing a line of credit, you may only take up to 65% of the value of your home and the remaining 15% can be a fixed or variable mortgage product.
I hope this helps and if you have any questions about refinancing any property, whether it be your owner occupied home or a rental property give me a call.