Refinance your mortgage

Lenderoo is here to help get you the best refinancing mortgage. We shop over 57 lenders to get you the best rate!

What is mortgage refinancing?

Refinancing is when a homeowner replaces their original mortgage with a new one. Often, this is done to obtain a mortgage with a better interest rate and term. Refinancing can also be used to access home equity or consolidate debt.

While refinancing can help lower monthly payments and save money, it should only be considered by borrowers with a good credit history. With a low credit score, refinancing can be considered risky.

Mortgage refinancing lenders

Not all lenders are the same. Find the right mortgage refinance lender that offers the best interest rates with conditions that meet your personal and financial situation.

Steps to refinancing your mortgage

Refinancing can be a great financial tool, if done right. See our step-by-step guide to refinancing a mortgage:

1. Determine your home’s equity – Get a home appraisal to determine the current value of your home. Your home’s equity will be the difference between its market value and all outstanding debts secured by your home.

2. Calculate the costs – When refinancing, it’s important to consider the associated costs to see if it makes financial sense. Some of these costs may include prepayment penalties, legal fees, and more.

3. Apply for a mortgage – Compare the current mortgage refinance rates and find the right lender for you. You may also decide to work with a mortgage broker to help you with your application.

4. Get approved – Receive a mortgage approval from a lender, indicating how much you could borrow and the interest rates you will be offered.

5. Submit documentation – Provide the lender with the requested documention, which could include proof of employment, proof of financial stability, and information about financial obligations.

6. Finalize your paperwork – Negotiate the terms and conditions of your mortgage contract with your lawyer. Read the contract carefully and sign it to refinance your mortgage.

7. Access your funds – Complete your mortgage refinancing by paying the closing costs. Once this is done, get access to your funds!

Mortgage refinancing frequently asked questions

How much can I borrow?

When refinancing, you can only borrow up to 80% of your home’s value minus any outstanding debts secured by your home.

For example, with a home worth $300,000, you can borrow up to $240,000 (80% of $300,000). Then, subtract your current outstanding mortgage balance of $150,000 to get $90,000.

Do I need an appraisal?

Most lenders will require that you get an appraisal even if you’re under the 80% loan-to-value ratio. Some lenders may self-insure the mortgage and require an appraisal. Other times, the insurer may require an appraisal.

Do I have to pay a penalty fee?

If you’re breaking your current mortgage contract, most lenders will charge a prepayment penalty fee. This fee is usually three months’ interest or the interest rate differential.

There’s no prepayment penalty fee if you’re refinancing at the end of your mortgage term.

Can I pick a different lender?

Yes, when refinancing your mortgage, you can change lenders. In fact, it’s recommended that you shop around to find the best rate available. Of course, you may also choose to stay with your current lender.

What other fees are there to consider?

When refinancing your mortgage, some other fees to consider include the discharge fee, registration fees, legal fees, appraisal fees, etc. Most of these fees are required, regardless of whether you’re breaking your contract early or refinancing at the end of the term.

How long does it take?

Typically, the entire process will take around a month, from start to finish. Some factors that may delay the process include a busy market or if the lender finds financial issues in your application.

Are you ready to
get started?

Whether you’re applying for a mortgage pre-approval or financing for your second home, Lenderoo makes it easy to compare your options from coast to coast.

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