Are you thinking about a mortgage refinance?
Doing an early mortgage refinance has become a bit of a trend; not surprisingly though, everyone is looking to save money where they can. Obtaining a new loan with better interest rates for your home could mean saving money on monthly mortgage payments or using the extra money on other projects such as renovations, consolidating debt or making investments.
The decision to refinance and break an existing mortgage should not be taken lightly. Regardless of what the benefits look like on the surface, there may be penalties associated with refinancing; penalties that could leave less change in your pocket than you had expected.
Before you sign any papers, do your research. If now isn’t the time to refinance, keep in mind that I can review your mortgage at any time so it is always possible to do something about your mortgage when you are ready. For now, ask your me to conduct a mortgage analysis to determine if renewing your loan at a lower rate is worth it.
Until recently, the main penalty you would ever have to pay was three months interest, if you have a fixed rate financial institutions now also look at the Interest Rate Differential (IRD) and will charge the higher of the two.
In order to qualify for refinancing you must have at least 15-20% equity in your home. You must then re-qualify for the new mortgage. If it is determined that long term savings outweigh the penalty, then taking advantage of the current low interest rates may be something you should look at.
I would be happy to help you along! Give me a shout if you want to discuss, or apply online.