A blend and increase allows you to increase your existing mortgage. The new funds you will receive will be at current prevailing mortgage rates. This rate will be blended with your current rate proportionally.
This can be an effective method of refinancing if there are limitations with your existing mortgage such as a large pre-payment penalty.
For example, your home is currently valued at $400,000 and your mortgage is $200,000 at a 3.5% fixed interest rate with 2 years remaining until expiry. You want to add an additional $50,000 to your mortgage to renovate and consolidate some debt. Current interest rates for a 2 year term are now at 3%. You will still pay 3.5% on the remaining $200,000 balance for the remaining two years, but will be 3% on the “new money”. Your rate will be averaged to reflect this blended rate.
We evaluate all options for you and will recommend what will work best. Call us at (905) 265-0246 or email us at firstname.lastname@example.org
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