I Want to Refinance my Current Mortgage -- Considerations?
Looking At Two Scenarios
Refinancing prior to maturity to a lower interest rate
Refinancing prior to maturity to obtain equity from your home
Refinancing Prior to Maturity to a Lower Interest Rate
Normally you can refinance prior to maturity with a penalty .
The penalty could be a three month interest penalty or loss
of interest, depending on the type of mortgage you have and
the remaining time to maturity.
Usually, if you are three years or more into a five year term
and you have a two percent spread between your rate and
the current rate , it makes economic sense to refinance.
Do not jump at the blend option normally offered by
institutions as a way to have no penalty. There is a penalty. It
is hidden in your cost of financing and it does cost you.
Analyze the savings versus the cost and the length of time
that it takes to recoup the penalty you pay.
Cash back plans offer a viable alternative when
refinancing, but first, make sure you know all of the facts
about cash back.
To wait until maturity for rates to fall is a gambling
proposition.Rates are at a 40-year low, so now is the time to
cash in and secure yourself.
Refinancing Prior to Maturity to Obtain Equity from Your Home
You can obtain equity from your home up to 95% of it's appraised value through a Genworth insured mortgage for any purpose
You can also obtain up to 100% of your equity through a non
CMHC insurd lender
You can build your costs into the refinancing
Do you refinance your existing mortgage or use a line of
credit? Weigh the alternatives carefully
Please contact us for a free analysis of your particular
situation. We have been in business now for 10 years and we have
many past clients who rely on us to give them the advice that will
make money for them, not the lending institution. If we cannot
recommend a better alternative than that offered by your
current lender, then you will know you have the best possible
financing in the marketplace. To obtain an a quick overview of your
situation by email, please click here.
Renewals
My Mortgage Will Soon Be Coming Due For Renewal. What Should I Do?
Facts
Many people accept the institution's written renewal
without question. In fact,in a recent CMHC survey,90% of
homebuyers renewed with their existing institution . 70% of
those renewed with the bank's first offer and probably
paid too much.
A renewal offer will rarely have a discounted rate.
A renewal rate is normally only guaranteed for 30 days
prior to renewal.
There is more to a mortgage renewal than just interst rate
and term.
A mortgage is a financial planning tool but never treated
that way.
Questions
How far in advance can I get my rate guaranteed?
Did you institution show you the 5/15 program when you
obtained your original mortgage? If they had you would
have 10 years left on your mortgage after 5 years!
Has your institution ever suggested there is a way to pay
off your mortgage using tax money?
What can the mortgage professionals do for me that my
lending institution cannot? You may have just answered
that question yourself!
Answers
We take the time to consider your mortgage renewal as
part of your overall financial plan. There are many options
to consider that will affect your financial future.
Arrange an appointment with a Mortgage Professional to discuss how
we can help you or for help with an upcoming renewal by email,
please click here.
