Because of the potential large supply for residential mortgage refinancing options, its going to be important to clearly understand the objectives for mortgage refinance so that the proper mortgage product can be matched up with the applicant.
But even before looking at available mortgage refinance options, the very first step is to fully understand the terms and conditions in place for the mortgage that you presently have and want to refinance into a new mortgage.
If you currently have a fixed interest term, then early prepayment of the mortgage is likely going to trigger an interest prepayment penalty, so its going to be important to know what that amount will be and if there are any ways you can minimize it.
The other area of initial work would be reviewing your credit profile and credit score as well as your cash flow and financial net worth to better understand the types of mortgage programs will be the best to focus on.
Armed with your objectives for refinancing, a solid understanding of the terms and conditions for the mortgage you want to pay out, and a good understanding of your credit profile and financial profile in terms of how a lender will view them, you are now in a position to consider different types of mortgage lenders and products for a residential mortgage refinance action.
Depending on your borrowing objectives, mortgage terms, and lending profile, there can be a considerable number of options available to you in the market.
All of the features of these program should be weighted against your requirements and borrowing capacity. And while interest rate is going to be a key component of any borrowing decision, there can be many other features that provide value to you that could even rule out the lowest interest rate candidates.
For instance, some of the mortgage programs that consider home mortgage refinance requests and provide the lowest market rates, also do not provide a great deal of flexibility with respect to prepayment options, payment adjustments, and so on. Stripped down rates can come with stripped down features, which can still be a good fit provided the program meets all or most of your requirements.
The best way to determine when and how to go about arranging a residential mortgage refinancing is to work directly with an experienced residential mortgage broker who can quickly assess and understand your mortgage refinance requirements and borrowing capacity, and provide relevant options for your consideration.