When Is The Best Time To Refinance My Mortgage?
I used to think that once my clients chose a five year fixed mortgage and locked it in that that was it. It didn’t matter what happened to interest rates, you didn’t have any better options. I soon discovered that when interest rates drop, there is an opportunity to save thousands…and you may be leaving money on the table.
Does My Bank Know If Now Is The Best Time?
We all know that time is our most precious possession. And depending on where you are in your mortgage contract, your bank could be punishing you without you even knowing it.
In fact, you may have even approached them and asked about how you can refinance your existing mortgage with them as you have seen interest rates drop and want to take advantage of the times. But the answer you received is vague or an abrupt no.
The truth is that there is nothing in it for the bank (translated additional profits) so completing an internal refinance typically is not encouraged.
How can we truthfully find out if it is the best time to complete a Mortgage Refinance or not? This is accomplished through speaking with a party that is not beholden to the banks. I only work for you and shop all the major lenders in Ontario to find you your best Mortgage Refinance options.
Simple Guide To Find Best Time To Refinance Your Mortgage
If there was a way to refinance your mortgage today and save thousands (even with paying the penalty) more between now and your approaching maturity…would you take 15 minutes to find out?
If the answer is yes, then I have a simple guideline for you to determine if that conversation with me is worthwhile:
1. Current Interest Rate – As of today’s writing, you have an interest rate of 3.5% or higher. This ensures there is enough of a gap between your rate and today’s rates to make a Mortgage Refinance worth it.
2. Remaining Mortgage Term – You have a remaining term of 2 years or less on your existing mortgage. There are times when a longer term is still worthwhile but typically the bank’s early penalty becomes too much once you are over 3 years left on your mortgage.
3. Early Mortgage Penalty – Most mortgages have a penalty of either a three month interest penalty or an interest rate differential (complex ‘bank speak’ meaning you will pay us if we are going to lose a penny). And you will typically pay whichever is greater. Having this number available on our call will make short work of determining your outcome.
Find out more about all of the things you need to know about your Mortgage Refinance.
Time As Reward Or Punishment
I have heard it said by financial planners that time is either your greatest ally or your worst enemy depending which side of time your money is sitting on.
The truth is you could be missing out! You could be paying thousands of dollars into the bank’s coffers that could be in your pocket. All that needs to happen is a quick phone call.
Picture this…it’s a couple of weeks from now and we had a chat and found out it was your time. Now your daily work and all your efforts towards your retirement are rewarding you more each day. Was it worth it to contact me? So please, do it today.