Sub Prime Refinancing Options
“Potentially Lower Cost Refinancing Options Available For Citifinancial, Citi-Corp, Household Finance, Avco Finance, And Accredited Mortgages”
Here in Canada, companies like Citifinancial, Citi Corp, Household Finance, Accredited, and Avco Finance provided modest amounts of financing rather quickly to borrowers with few other options.
In some cases, overtime, these could have become consolidated into these companies sub prime mortgage products similar to other debt refinancing in the market.
And during the recent recession, this type of funding remained available when other forms of financing on distressed credit situation either pulled back on issuing loans or left town all together.
But the sub prime market is starting to rebuilt itself with more lenders and offerings getting back into the game to provide sub prime offers to different slices of the residential mortgage market.
The result is that for certain borrowers that currently have a Citifinancial mortgage, Citi-Corp mortgage, Household Finance mortgage, Accredited mortgage, or Avco Finance mortgage, you may now have different and perhaps better mortgage financing options available to them in the market.
Specifically if you are in a situation where your mortgage will not be renewed or is in demand for repayment from your current sub prime lender, provided you have some equity in your property, there is a good chance that options are available either from an institutional lender or a private lender.
Or if you are paying a mortgage rate of 9% or higher, there is also a good chance, depending on the equity in the property and your borrowing profile, that a better sub prime option can be available to you as well at the present time.
If you’re considering refinancing an existing mortgage, you’re going to have to consider prepayment penalties. But for certain types of sub prime mortgages where the borrowings are integrated among credit cards, term loans, and home mortgage advances, the stated mortgage balance may be considered open for prepayment and could be moved to another lender without much cost.
Once again, the above mentioned secondary market lending sources can provide a valuable service for short term financing and have filled this role very well, especially since 2007.
For some people paying these mortgages, there may now be better options available in the market as things start to return to more normal sub prime lending.
If you have a mortgage in Canada with Citifinancial, Citi-Corp, Household Finance, or Avco Finance, or Accredited, and either need to refinance or would like to better understand your options, please give me a call and we’ll go over your situation and options together.
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About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel