Vijenthiran Vijayaratnam
AMP # M08002899
Refinancing can be defined as the placement of a new mortgage to pay out an existing mortgage while using the same property as collateral. This can be done with the same mortgage lender, or with a different lender.

Some of the main Take advantage of lower mortgage rates If you are losing sleep because today's interest rates are quite a bit lower than what you are paying on your mortgage, then it might be time to consider refinancing. You would basically be exchanging a high mortgage rate for a lower one, giving you a lower monthly payment. Today's mortgage rates.
Before jumping into mortgage refinancing, you want to first make sure that it is going to be worth your while. The first step is to check with your existing lender to find out what penalties are involved in paying out your mortgage early. Once you have established what the penalty is going to be, you can then compare your existing payment with your payment at the new interest rate. Then factor in how much you will save over the term of the new mortgage, and subtract the penalty.

For example, lets say you have a $250,000 mortgage at 6% interest, a monthly payment of $1,600 per month with 48 months remaining on the mortgage term. In this case, we will use a $3,000 penalty for paying out the existing mortgage with the proceeds from a new mortgage at 5% interest for the same amount, but extending the amortization to 35 years giving us a new monthly payment of $1,268. We are including the $3,000 penalty in the new mortgage for this example. This represents a difference of $332 per month. If you multiply the savings by the 48 remaining payments they had on their first mortgage and subtract $1,000 for closing costs, they will have saved $14,936 over this period. If the client in this example needed to cut expenses at this time, this would be well worth it as their savings over the 48 months significantly exceeded the $3,000 penalty. So why not jump right into doing it? This is great if the borrower is in need of more cash flow over this period, but by extending their amortization to 35 years, they will end up paying a substantial amount more in interest. They can always make this up by renewing their mortgage at the end of the term for a lower amortization making up for any extra interest they paid, or by making additional payments toward their mortgage.

Get equity/cash out with refinance mortgage loans

Benefits of getting equity/cash-out with a refinance mortgage loan:
With equity/cash out of your commercial property you could:
- Put a down payment on some new commercial real estate to rent out or resell to make money
- Make some new investments to have additional forms of income
- Start a new business
- Ease financial strains by paying off high-rate credit card or loan debts

Fill out the online application - and get a refinance mortgage now!

Get a line of credit with refinance mortgage loans
Use a refinance mortgage loan to get a line of credit: an amount of money made available for you to borrow as you please. Benefits of getting a line of credit with a refinance mortgage loan:

Use a line of credit for emergencies....
A line of credit from a commercial refinance mortgage loan can also come in very useful for unexpected emergencies. Like you get a sudden increase of business from an ad you splurged on and you need to put more phone lines into your office. Or, for some strange reason, your 1993 fax machine bites the dust. Whatever the emergency, good or bad, I'm handy to have around.

Use a line of credit to float costs....

A line of credit from a commercial refinance loan can be very useful. If you're running a business, the line of credit from an equity loan can be extremely helpful in floating your monthly costs - like paying your employees and your bills - until your deal closes next month. With a line of credit from an equity loan, you simply use the money made available to you from that line of credit, to pay those expenses right away. Then, whenever you're ready, you can pay back the amount you borrowed at a low interest rate.

Refinance your commercial property: just apply online for your mortgage!
585 Middlefield Road, Suite 16.
Toronto, ON. M1V 4Y5
Tel: 416.732.7784
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