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Refinancing Mortgages in Barrie: Three Easy Steps

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Three Steps to Refinancing Mortgages in Barrie with a Second Mortgage

Most people don't realize refinancing mortgages in Barrie with a second mortgage isn't uncommon. Therefore, refinancing your second mortgage is worth consideration if it can save you money in the long term. For example, interest rates are low right now, so it makes sense to refinance. Make sure to consult with a qualified professional, such as a mortgage broker or an experienced loan specialist. Before jumping into the thick of things, follow these three steps to make an informed decision.

Step One

Figure out if refinancing your second mortgage is really in your best interests. Ask yourself what benefits you plan to gain financially. Is it for a lower interest rate? Or to get more flexibility with your monthly finances? Or perhaps to pay off high-interest debts? Try to compare your current state of finances with your future state of finances with and without refinancing. Remember that refinancing a second mortgage often comes with extra costs, such as closing fees that should be accounted for when budgeting. Your finances need to be in a healthy state to qualify. Pull your credit report to find out if you have a low credit score, which should be disputed right away. The quicker you repair the damage, the better your refinancing will be. This is because most lenders base applications on a borrower's credit score. Therefore, even a small error on your report can drastically affect the outcome and approval of the interest rate.

Step Two

Start your rounds. It is recommended to get at least three different lenders’ opinions regarding the refinancing of your second mortgage with their specific plans. Ask about different rates, loan terms, lending fees, prepayment penalties, and closing costs to weigh your options; don't be afraid to negotiate. One should generally start with the lender they currently use for their second mortgage. Tell them your financial goals and needs and find out what they can offer you. You can also shop around for different plans on websites such as to see what else is out there online. The website will provide you with a foundation of what plans are available for you based on the data you input. This does not guarantee you getting the lowest interest rate, but it can help you source the most strategic plan for yourself. If you are a member of a credit union, find out if you qualify for a special rate since credit unions likely have a competitive rate that is lower than most lenders.

Step Three

Ask the lenders to do a prequalification, which won't review your credit report. While this approach does not give approval, it doesn't detract from your credit scoring. Do note that at some point some lenders may require an official home appraisal as part of the application process. Make sure to actually read all the paperwork, and if something dubious comes up, point it out and ask for an explanation before signing anything. If you are receiving cash, make sure you know when and how. It might be instantaneous with cash or deposited into a designated account on a later date. Remember to continue making payments to your primary mortgage until it is completely paid off. Altogether, refinancing mortgages in Barrie can be a lucrative move for you when working with licensed mortgage brokers and the correct steps are followed.



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