To refinance your mortgage is to increase your existing mortgage to get cash against the equity of your house for consolidating your debts, start a business or for whatever purpose.\n
Basically, to refinance your mortgage is to increase your existing mortgage to get cash against the equity of your house for consolidating your debts, start a business or for whatever purpose.
If your credit rating is not good or your income is not satisfactory or both you could not meet the standard credit requirements by a bank.
You need a mortgage broker to look for secondary lenders.
A mortgage broker charge you a broker’s fee for he/she does not get finder’s fee for her/his services from a lender on a borrower whose credit rating or income does not meet bank’s standard credit requirements.
Broker’s fee also amount in the thousands of dollars depending on the difficulty of finding a lender who is willing to approve your mortgage application.
If you really need to refinance, you may consider a second mortgage rather than paying off your existing first mortgage where you are required to pay substantial interest penalty.
Better still to avoid regrets and surprises, it is prudent to know in advance the cost of refinancing before making a decision to refinance. Otherwise, you may end up the cost of refinancing is more than the net amount you receive from it.