Tips for Refinancers

Not all home loans are created equal. Some appear great from the outside looking in, but aren’t so welcoming after you’ve signed up. Or circumstances change and a mortgage that once served your needs is no longer appropriate.

Whatever your reasons, refinancing is a big decision – as big as your initial decision to take a mortgage. Before choosing a new lender, you should be clear about why you’re jettisoning the old. The reasons might include:

• Your interest rate is too high.
• You’re earning more or less money, which changes how you’d like to repay your debt.
• You’ve discovered nasty fees that were hidden in the fine print.
• Poor service is driving you crazy.

Avoiding any or all of the negatives mentioned above might be the most obvious benefits of refinancing. But you should also consider positives. Refinancing can:

• Give you access to some of your home equity, freeing up spending for other needs.
• Allow you to consolidate other debts, such as car loans and credit cards, into your newly refinanced, low-interest mortgage.

Your current lender will often charge you a penalty for moving your mortgage. But if you refinance on the right terms you might still save money – despite the penalty.

The key is to crunch the numbers, comparing old to new.

Contact us for more information.