Refinancing your mortgage consists of breaking the current mortgage on your existing home and then re-negotiating a new mortgage either with the same lender or a different one.

One of the biggest misconceptions about mortgages is that you have to wait until renewal (also called maturity) to re-negotiate your mortgage. THIS IS JUST WRONG! Most mortgages have an early payout clause which will make it possible to pay an interest penalty and get out of the current mortgage contract.

Mortgage refinance - tips to help you cut fees and costs.

At first glance many people would say "why would I pay a penalty to get out when I can just wait and re-negotiate later without any costs or penalties"? Well, actually refinancing your home can lead to a substantial savings. In fact, in many cases it can lead to tens of thousands of dollars in your pocket.

Example:
Refinancing a mortgage in the amount of $175,000 at a rate of 5.5% into a mortgage at a rate of 4.5% would result in a gross interest savings of $8,410.87. In addition to the interest savings, the monthly payments would be lower by $99.61 which in turn puts an extra $5,976.60 into the homeowner's pocket within 5 years.

That's a grand total of $14,387.47 over 5 years.

Whether you live in a regular home, condo or mobile home... If you have a mortgage on that property, refinancing may be more than just an option..

An equity take out is another term commonly used for a mortgage that is refinanced simply because it refers to getting cash after the mortgage is refinanced. This cash can then be used for major purchases, renovations and/or investments.

Whether you are considering refinancing your mortgage so you can take out equity, or you want to refinance just to save money on interest, our mortgage specialists can help you get the best rates and advise you as to which options are the best for your situation.