Mortgage Refinance

There are several mortgages refinance options:

Home Equity Line of Credit

The home equity line of credit or HELOC enables access to the home’s equity, just in a different way. Instead of a single (or lump sum) payment, a HELOC provides ongoing access to a certain amount of money, similar to a credit card, but with a much lower rate. The amount of the HELOC depends on the value of the home.

The benefit of a line of credit is that payments are interest-only payments and homeowners can access it when needed. Downsides include variable interest rates and access to the total amount of the HELOC, which could lead to more unwanted mortgage debt. That being said, there are opportunities to lock in rates to protect monthly mortgage payments.

Private Mortgage

When homeowners cannot qualify for a mortgage to refinance through a bank mortgage debt consolidation or a home equity line of credit (HELOC), private mortgages may be an alternative. Since private mortgage lenders will secure a mortgage debt consolidation against a home, the interest is usually lower than high-interest debts like credit cards.

Private lenders usually charge a higher interest rate and fees than a bank, given the higher level of risk, however, this option still reduces interest costs over time. This is because these lenders understand that situations exist such as quick turnaround for financing, bad credit, stated income, and non-conventional properties.

Typically, private mortgages are shorter-term products and only require the interest portion to be repaid. Private lenders evaluate risk differently than traditional lenders and will consider the borrower’s ability to repay which is beneficial to self-employed and people with bad credit. Private lenders can also provide debt consolidation options through second mortgages.

Debt Consolidation Mortgage

To understand if a debt consolidation mortgage or a HELOC could be suitable options to consolidate debts, and help get your life back on track, contact Square Capital Mortgage Brokerage. We understand each case is unique and there are many factors to consider including homeowners with bad credit or low income. Unlike traditional lenders like banks and financial institutions, with very strict lending terms, Square Capital works with over 50 lenders, including private lenders, to find the right solution for our clients. Our expert mortgage brokers and agents will help to find solutions to lower your monthly payment and reduce or stop the interest on your debt. Lower monthly payments every month reduces the chances of financial default while improving your credit and managing your money wisely.

 Self-Employed Mortgage

We offer mortgages for the self-employed and financial solutions to fellow entrepreneurs. Bad credit and declared income are unexpected obstacles to self-employment and getting qualified for self-employed mortgages and other types of financing. In addition to banks, we are partners with private lenders who offer alternative mortgage options to help you with a new purchase, debt consolidation (that helps improve your bad credit score), and even renovations.

 Bad Credit Mortgage

A bad credit mortgage can help repair poor credit scores. Getting a mortgage and consistently paying it down or paying off your high-interest debts helps rebuild your credit score. Mortgage Lenders know this and will usually offer a private mortgage. Private mortgages usually charge a higher interest rate and more fees, however, the goal is to help borrowers repair their credit and move into a lower rate mortgage, quickly. 

Reverse Mortgage

If homeowners are 55 and older, they can qualify for a reverse mortgage to refinance their mortgage. This provides the ability to refinance by accessing the home’s equity without having to sell the property. Reverse mortgages allow homeowners to borrow up to 55% of the value of the home. The concept of this mortgage is essentially a reverse loan that means there are no repayments required. Payments to homeowners will be made either in monthly payments or in a lump sum payment. Homeowners will pay the reverse mortgage loan when they move, sell or the last borrower passes away. Typically, the interest rate is higher, and there are fees additional associated with reverse mortgages.

Spousal Buyout or Separation / Divorce Mortgage

Oftentimes during separation or divorces, assets have to be split. A mortgage refinance can be an option to buy out a spouse by leveraging the existing equity.

Business Partner Buyout Mortgage

Sometimes business partners decide to go their own way. Since assets may be tied up, a mortgage refinance can help buy out your partner while allowing you to continue running your company.

There are many situations when accessing the home’s equity through a mortgage refinance works. It is important to consider factors and speaking with a mortgage broker who specializes in refinancing will help guide you. Contact a Square Capital mortgage broker or mortgage agent to discuss what the most suitable option mortgage refinance options are available.