If you are struggling to make your monthly mortgage payments in Vancouver, BC, mortgage refinancing through Blue Pearl Mortgage may be the answer to your troubles. However, refinancing your mortgage is a big decision to make, and there are several factors you should consider before making the leap to refinance your home in British Columbia. Here are four considerations to make before you refinance your mortgage:

What are your goals?

When you come in for mortgage refinancing counseling at Blue Pearl Mortgage, we will first need to determine what exactly it is that you would like to accomplish through refinancing. Keep in mind that this process does not erase your debt, but rather restructures it. Instead of sticking with the original terms of your mortgage, you are changing them. If your goal is the reduce the interest you are paying or reduce the size of your monthly payments, mortgage refinancing may be helpful..

Is the timing right?

After you determine whether or not mortgage refinancing fits your goals, you will want to consider if your circumstances and timing are right for refinancing. Signs that refinancing may be the right move for you include if your credit score has improved since your original mortgage application, or if your income has changed in that time. Another consideration to make is how long you intend to live in your home. If you plan on moving relatively soon, it may not be worth it to pay the closing costs and fees associated with refinancing your mortgage. Additionally, you should look into what the current market interest rates are; depending on how the market it is, it may not be worth it to refinance if your interest rate will go up. Keep in mind that published interest rates are not precise, and only represent a ballpark figure.

What type of refinancing is best for you?

There are two types of refinancing: cash-out and standard. Cash-out refinancing involves taking out a new mortgage at a higher amount than your original mortgage. The difference between the two is then taken out in cash. This may result in a slightly higher interest rate, because the lender is risking more money. You may need to pay down any other high-interest debts immediately if this is the case. For standard refinancing, your current mortgage is replaced by a lower-rate option, and generally, no cash is taken out.

How much will it cost?

There are costs associated with refinancing your mortgage. As mentioned above, when you refinance your mortgage, you will have to pay closing costs, including the application fee, appraisal fee, origination fee, title search fee, inspection fee, and attorney and lender fees. That is why it is crucial to determine whether refinancing your mortgage will benefit you financially long term, or if it is not worth it due to these costs. 
When you need help considering mortgage refinancing in Vancouver or surrounding areas in British Columbia, Blue Pearl Mortgage Group can help. Contact us today to schedule a consultation.