Are you paying too much for your mortgage? Unless we understand the options available to homeowners, the answer could very well be yes. It begins with defining what a Mortgage Refinance means. Let’s help bring clarity to your question.
Mortgage Refinance Defined
The simplest way to define a Mortgage Refinance is as follows. An existing mortgage holder breaks this mortgage. They replace it with a new mortgage with a different interest rate and terms.
Quick example: You have a 1st mortgage of 450K with the bank at 3.5% and you are in a five year fixed mortgage term. You have 18 months left in your term and you qualify for a new mortgage for the same amount however today’s interest rate is 1.99%. You break your mortgage early, pay the early payout penalty and begin a new term at the lower interest rate.
Typically the amount you borrow will be the same as before however a Mortgage Refinance is also an opportunity to consider borrowing additional equity from your home at lower interest rates for home improvements or consolidating debt.
Find out more about all of the things you need to know about your Mortgage Refinance.
Mortgage Refinance Confusion
I have heard a surprising amount of my clients who are confused when they speak to the bank about what happens now that they want to refinance. The reason for this is the bank mortgage representative failed to mention that 7 out of every 10 mortgages (five year fixed) are broken in year three.
You would think that what a Mortgage Refinance is and the implications would be explained at the signing of your mortgage contract. Unfortunately the lack of discussion is part of the plan for greater bank profits.
The complexity of the big bank’s mortgage contract makes understanding a Mortgage Refinance difficult. They profit from your ignorance in inflated early payout penalties and often in how they register the mortgage charge on title.
Cutting through the complexity is this Mortgage Agent’s specialty. Take a solid first step by calling me for a complementary review of your existing mortgage contract. I will help you understand your Mortgage Refinance-ability in simple to understand language.
Mortgage Refinance Opportunity
There is a real opportunity today to save significant interest cost on your mortgage if you are a candidate for a Mortgage Refinance. As of this writing, rates are at new historic lows. But confusion often leads to inaction. Don’t miss out by letting the bank keep you in the dark!
Now that we have a better understanding of what a Mortgage Refinance is…clarity gives way to hope. For the first time in a while you may be thinking ‘I might be on to something!’ Let’s keep this feeling going. Find out just how much you will save by reaching out to me today.