During your lifetime there may be situations that come up that will make you think about refinancing your home. There may be an emergency situation that you need to handle, a family vacation that you've always wanted or a series of renovations that your house desperately needs. Whatever the reasons may be, you should know that sometimes refinancing is your best option, and sometimes it is not.
Is refinancing right for you?
Refinancing is a very long and complicated procedure. It can take up to a month to find out all the details about your application, although it can also go faster as well. It all depends on the financial institution you are approaching and how fast their processing is.
You will have to look around for different quotes for refinancing. Banks will offer different interest rates and financing structures. You’ll have to look through the various offers to find out which one would work for you.
In many cases refinancing is not your best option. It depends on your original mortgage and how many fees you'll have to pay. Quite often the high cost of the fees is more than any profit you would see.
If you discover that refinancing is not the best choice you should take a look at getting a personal loan. If you have a lot of equity built-up in your house already you'll probably be offered a very good interest rate on the personal loan based on your assets.
These must be used with caution because of the high interest rate attached to them. If you have a card with a grace period and a high credit limit, you might want to think about using your card if you know that you can pay most of it off by the time the grace period is over. If you manage to pay it all off within that time frame you’ll have essentially taken out a no interest loan.
Financing your Calgary home may very well be a good option for you, but it is really one of those things that needs to be discussed with a loans officer first. Everyone's situation is different and refinancing can sometimes cost more than it’s worth.