Getting approved for home refinancing with low credit in Ajax, ON will require you to have a fair amount of equity in your home. Mortgage lenders lending for low credit home refinancing in Ajax ON will lend up to 75% of the value of your home. Refinancing your home with low credit in Ajax ON will have to be done by using an experienced mortgage agent to access these alternative lenders. Lenders who mostly work with low credit borrowers are known as B lenders and sub-prime lenders. If you have low credit and looking to refinance your home I can help. In this scenario I choose to write an example of a home refinancing being done to consolidate and pay off obligations. If you have long standing debts such as visas, lines of credit, 2nd mortgage or any other loans I can help you to use your home equity to pay off all those obligations. I can also help you get a low credit home equity loan to pay for property tax arrears, collections, income tax arrears, judgements and any other obligation you may have.
To give you a clear idea, I am providing you a detailed before and after "LOW CREDIT HOME REFINANCING SCENARIO".
Example # 1 (before home refinance) | ||
Current Situation | Balance | Payment |
Mortgage (5.00%) | $150,000 | $959.00 |
Unsecured Line | $10,000 | $300.00 |
Credit Cards/Loans | $30,000 | $900.00 |
Penalty | $2,500 | $0.00 |
Total | $182,500 | $2,150 monthly |
Below is scenario after refinancing your home and paying off all those obligations.
New Mortgage | Balance | Payment |
Mortgage (4.50%) | $182,500 | $1150.00 |
Unsecured Line | Paid off | $0.00 |
Credit Cards/Loans | Paid off | $0.00 |
Penalty | Paid off | $0.00 |
Total | $182,500 | $1150 monthly |
The above scenarios are showing that you would save $1,000 per month. That means you are saving $12,000 per year. In 5 years your net saving is $60,000. Providing most of the debts are paid off!
Can I Refinance With Bad Credit?
With home refinancing rates near historic lows, it’s no wonder so many people are considering refinancing their mortgage.
Home refinancing means replacing your existing mortgage with a new mortgage. Home refinancing can save homeowners money over the life of the loan (since they’re paying less in interest) and lower their monthly payments. But for homeowners with less-than-stellar credit, refinancing can be difficult if they don’t have a lot of equity in their home.
Can I do a Home Refinance with No income Proof?
The no income proof mortgage loan is the type of refinance loan that you don't need to show your income in order to get approved.
Maybe you don't have "consistent" income because you're self-employed. Or maybe your annual income high, or isn't a salary or hourly, so it changes all the time. If that's the case, this is the type of refinance loan for you. No income-showing required!
Main Benefits of No income verification refinance mortgage loans:
Here's some benefits of choosing the "no income verification loan" to refinance your home with:
What Is the Typical Refinancing Process Like?
No matter your credit score, the refinancing process typically works like this. A borrower will contact a bank or a mortgage agent/broker to see if they can refinance their home. The mortgage agent/broker will have a lot more home refinancing options for the client. An experienced agent will ask questions to determine if they feel they can help the person refinance their home and will explain the client what they can expect(amounts, interest rates, terms, etc). The mortgage agent will take a full application to submit to the potential lender and will also collect necessary documents from the client. The documents required for the home refinance process will vary slightly depending on the lender being used since some lenders require more documentation than others. If the home refinance is approved, the lender will give you a quote, which should include the rate, closing costs and fees. If you accept this quote, the lender will usually order an appraisal of your home, which will determine the amount of equity you have in your home Finally, you will close on the loan, during which time you’ll sign all closing documents, pay any fees and the new lender will send money to the old lender paying off your former mortgage.
What are the Advantages of Refinancing?
One of the reason a person may refinance their home is to lower their mortgage interest rate. Getting a lower interest rate can have a big impact on your monthly payments and can potentially save a person hundreds of dollars per year. Another reason people refinance their home is consolidate debts to lower their monthly payment obligation and/or lower the interest rate on their loans. Since credit cards and personal loans are often higher interest than a mortgage some people will refinance and consolidate all their debts into their mortgage and at the same time lower their overall monthly payments. Some people simply refinance to take out some of the equity they have in their homes in order to use the money for something else.
If you are looking to refinance your home, I’m here to help. I have a network of mortgage lender partners to help you even if you have bad credit. If you’re willing to use my services. Please fill out our short application form and we will contact you within a few business hours.
My office can help you with any of the following mortgage scenarios:
The Benefits of Using a Mortgage Broker VS a Bank to Refinance you Home
There are many options available today for Canadians and going to the bank for a mortgage loan just doesn’t make sense anymore. By going to bank, you are only shown that bank’s mortgage products which are very few. By working with a mortgage broker you have various options.
What are the benefits of using a mortgage broker instead of a bank specialist to refinance your home?