There
are some situations in which a refinancing
decision should invariably be made. If you are able to negotiate
a "no-cost" mortgage (you pay no penalty or closing
costs), and if the new mortgage rate is lower than your existing
rate, then refinancing your loan would certainly be of financial
benefit to you. If the remaining mortgage balance, including
penalty and closing costs, can be refinanced at a reduced
monthly payment, and still be paid off within your existing
mortgage payment term, then refinancing would be highly advisable.
If you need extra cash for a home equity or auto loan, and
the mortgage rate is lower than alternative loan rates, then
refinancing is probably the best choice. Lastly, you can generally
count on it being time to refinance when your new mortgage
rate is at least one to two points lower than your existing
rate, and you plan on staying in your home for at least three
to five years .
What Refinancing Myths Do I Need to Watch
Out For?
1.
Blending your existing rate with your current lender!
This
is the most common technique all lenders will try on you.
They hope you do not know how to compare what this means
and that you will not shop around.
Huge mistake!
Sometimes blending is in your favor, and if it is, we will
tell you that. However, more often than not, it is not in
your favor, and a new mortgage rate will save you thousands
of dollars in interest costs!
2.
One widespread myth that needs to be dispelled is the idea
that lowered monthly payments are the financial yardsticks
that wise refinancing is measured by. Monthly payments are
only comparable if they are based on the same loan duration!
In fact, lowered monthly payments can be achieved even at
a higher mortgage rate, if the new mortgage has a longer
term than the remaining years of the old mortgage.
3.
Another common misconception about refinancing is that if
the new rate is not at least two points lower than your
existing mortgage rate, then refinancing is not worth the
time and trouble. In many cases, especially if you are planning
to stay in your home at least three to five years, even
a one-point reduction can make an enormous difference in
your overall home mortgage cost. In addition, with the constant
technological advances in the mortgage industry, obtaining
a mortgage loan or refinance is now faster and easier than
ever before.
If
you have any confusion or apprehension about your refinancing
decision, call Mark Fidgett at (604) 273-2002, and he will
consult with you at no charge or obligation.
What Exactly Do I Need To Consider About
Refinancing My Home?
To
accurately sum up your refinancing decision, you need to
thoroughly consider the following six factors:
1.The
amount of reduction in the mortgage interest rate.
2.The amount of reduction in the monthly payment.
3.Any prepayment penalties on the old mortgage.
4.The amount of closing costs, including any appraisal of
CMHC costs, legal fees, etc.
5.The number of years you plan on retaining your home.
6. The effect on your cash flow overall lower payments could
make.
What
Will Actually Be Involved When I Refinance My Home Mortgage?
When
you refinance, the proceeds from your new mortgage loan
are used to pay off your old mortgage, bank loans, credit
cards or new money for renovations or any other worthwhile
purpose. Even if you use the same lender this is true. You
are not simply re-negotiating the terms of the old mortgage,
such as reducing the interest rate.
You
need to expect that your home will have to be appraised
again, and possibly inspected. Your credit history and overall
financial picture will be reviewed again to make sure you
qualify.
Of
course money doesn't just grow on trees, but if it is truly
the right time for you to refinance, then with the money
you will be saving after twelve to eighteen months, you
should begin to feel like your money trees are in full bloom!
What
Should I Do If I'm Still Not Sure I Should Refinance My
Home Mortgage?
If
after reviewing this report you are still not sure whether
or not you should refinance your home, then it is time to
call on someone trained specifically to help you interpret
your individual mortgage situation.
We
Do This For You At No Cost or Obligation
The
Personal Loan Consultants at Mortgage Intelligence are trained
to take care of all those details for you, and we will gladly
meet with you at your convenience to discuss your specific
refinancing situation. This consultation is absolutely free,
and there will be no obligations or salespeople hounding
you if you decide that it is not the right time for you
to refinance.
Remember
that refinancing your home mortgage does not need to be
a tedious, overwhelming task. Call us at (604) 273-2002,
and let us show you just how quick and hassle-free creating
increased cash flow through your home mortgage refinance
can be!
Mark
Fidgett
Your Personal Mortgage Consultant, for life
Got
A Question?
info@notapennydown.com
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