Refinancing – Renewing – Equity take-out –HELOC’s
Welcome to the new 2018 world of mortgage financing – new stricter and more expensive solutions to what we have experienced in the past.
The new regulations have resulted in conventional financing rates heading higher, and high-ratio insured and “insurable” mortgages being much more competitively priced, (read – lower rates than conventional), and sometimes a better option in spite of the high ratio mortgage insurance premium added to the mortgage.
Perhaps the most shocking to most homeowners is the inability to refinance unless they leave 20% equity in their home, and of course, high-ratio mortgages cannot be refinanced at all under the new regulations – so the mortgage must be reregistered as a conventional mortgage (higher interest rate) at the time of refinance.
Particularly hard hit will be folks who are close to or at retirement age – not only to be faced with higher interest rates, but also finding it harder or in some cases impossible to qualify to remove equity from their homes at a time when they had planned on doing so – to help family members to buy or go to school, (or to do so themselves), to invest, to do home renovations of their own, to access funds so they can stay in their homes and still be able to maintain them when income levels can drop dramatically, etc.
The “reverse “ mortgage of days gone by, now a much more improved and less expensive option than it used to be, is going to be back in demand and in some cases the only solution for some of these folks.
Other options include adding a Home Owners Line of Credit to the current mortgage if it permits, refinancing the current mortgage prior to renewal into a combined longer term situation, (blend and extend), or refinancing the entire mortgage at renewal into a new term of your choosing.
Finding out what your options are for your situation is one short phone call away- call now to set up a sit-down or telephone discussion at your convenience with Arlene, Carol or Jessica.
Your Home - Your Mortgage - Our Passion
Mortgage Refinancing October 2, 2017