Mortgage Refinance Rates at Historical Lows in Canada

With today's low mortgage rates and mortgage refinance rates for your can be a very good option to save money. At the beginning of 2012, interest rates are now at historically low levels in Canada. 5 year fixed rates can be found as low as 2.99% while variable rates are around 2.85%. As home prices have increased across Canada, many borrowers now have the equity in their home to refinance a mortgage and payoff higher interest credit card debts and other loans.
The amount of monthly cash flow savings that can be achieved with a mortgage refinance is on average $500 - $1000. This is a substantial amount of savings for the average borrower. In general, credit cards tend to have the highest monthly payments and interest rates, so these items should be paid off first. After credit cards, the next items are normally credit lines, car loans, student loans and personal loans. You can also consider to refinance a mortgage if you need money for investing, home renovations, buying another property, buying a car or for any other use. Take advantage of today's low mortgage rates for any purpose that will help increase your net worth.
A good credit score will be required to qualify for a low rate mortgage refinance. On average, the FICO score will have to be 650 or above to get approved by most lenders, for up to 85% LTV financing. An appraisal of property will also be required either by CMHC/Genworth or by a certified appraiser in Canada. When submitting an application to a mortgage broker, please use a conservative property value so the numbers are realistic. Qualifying for a mortgage amount is currently calculated at around 5 to 6 times your gross annual income level. So for example, if your income is $50,000, you can qualify for around $250,000 to $300,000 loan at today's mortgage refinance rates.
The typical refinancing takes about 1 or 2 days to get approved and 10 - 14 banking days to close. Legal fees are normally around $700 to close the mortgage. Appraisal fees are around $300. Considering the amount of savings that can be achieved by paying off high interest credit debts, refinancing a mortgage can be well worth the small fees. Have a look at your current financial situation today and if you believe you are paying too much for debt payments, consider using low refinance rates to save money.

Darin Bauer is a Mortgage Agent in Toronto with Mortgage Intelligence Inc. Specializing in mortgages for home purchases, refinancing, renewals and second mortgages.

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Essentials of Locking VA Mortgage Interest Rate

VA home loans are all about getting the dream home you have always wanted and at the same time getting it without the need to shell out a huge amount of cash at one time. The catch with home loans are the irregular interest rate on every VA loan. Not many people know that interest rates can actually increase through time and not many people know that locking in their interest rate should be the first thing that they do after getting a loan.
Whenever you get a quote for a VA mortgage rate, this rate may increase. The interest rate can increase on a regular basis so the original mortgage quote, in general, is futile. to avoid this, as a client you should demand that all rates should be locked in and should stay just as it was quoted by your bank or lender. This way you can save yourself from the increasing interest rates, and expect that your monthly mortgage rate would be the same.
When is the best time to lock in your mortgage rate?
This is the question that has been asked by a lot of people. Usually, they find it hard to look for lenders or brokers who can guarantee a stable interest rate for the duration of the pay period since most lenders have increasing interest rates on the mortgages that they offer. Before you think about how to refinance your VA mortgage rate, the first mortgage problem that you will encounter is when to lock in the rate quoted to you. The usual practice is to lock the mortgage rate at the beginning of the loan application and even before it is submitted to underwriting. Some borrowers wait at the rate to improve but this option will always be a gamble.
Once locked, get it in writing
Once you have locked your mortgage rate, make sure that everything is in writing. If your lender or bank will not give you a document ratifying what has been said, than you have to second thoughts about this lock-in since it might not be true. It's important that you get all statements in writing since increase in interest rates can happen after a few years and during that time, people involved in the transaction may be gone already or may have forgotten the lock in; the document serves as a proof that the interest rate will stay the same.
Be aware of possible changes
For every VA home loan rate it is important to take note of all conditions and remarks at the time of loan application. Why? Because even if you have locked in your mortgage rate, some lenders and brokers have the power to change this and still increase the mortgage rate. In short, you have to know exactly what you are getting yourself into.

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