When it comes to mortgages, knowing the difference between purchase, refinance, and switch mortgages can help you make informed decisions. Here’s a quick breakdown:
1. Purchase Mortgage
- Purpose: Used when buying a new property (home, rental, or investment).
- Key Features: Requires a down payment (usually 5-20%), and you can choose between fixed or variable interest rates.
- Who It’s For: First-time buyers or those purchasing a new property.
2. Refinance Mortgage
- Purpose: Replace your current mortgage to secure a lower rate, extend the term, or access home equity.
- Key Features: Can reduce monthly payments, consolidate debt, or tap into your home’s equity (up to 80%).
- Who It’s For: Homeowners looking to save on interest or access funds for major expenses.
3. Switch Mortgage
- Purpose: Transfer your mortgage to a new lender at the end of your term for better rates or conditions.
- Key Features: No additional borrowing involved, just moving your current mortgage balance.
- Who It’s For: Homeowners wanting better rates or terms without changing their loan amount.
Which Mortgage is Right for You?
Whether you’re buying a home, refinancing, or switching lenders, each mortgage type offers unique benefits. I can help you navigate the process and secure the best deal for your situation.
