You have a few months before your existing mortgage term expires. The big question now is: Is it refinance home mortgage planning time?; or should you simply contact your lender and ask them to extend the loan on whatever terms they are offering?
Home loan mortgage refinance is a very personal, yet a very important decision to make. And it’s not one to be taken lightly either. Sure, it may take some work up front; but if done right, it could save you thousands of dollars over your amortization period – the time it takes for you to pay off your entire home mortgage.
Why Consider Refinancing?
Whether you are looking for refinance mobile home mortgage solutions, or whether it is your primary residence that you wish to refinance; the ultimate goal for considering a refinance mortgage is the same:
For You To Save Money!
So when is it worth it to refinance your mortgage? The answer is: If it helps you meet your goal to save money! There may be other extenuating circumstances where people do refinance – for instance to switch from a lender with poor lending practices to a more professional organization. However, for most refinance home mortgage applicants, the overriding consideration is cost savings.
And in order to ensure you do save on refinancing your mortgage, you should:
The ultimate answer to the question, when is it worth it to refinance your mortgage, will be determined by your findings from conducting the above exercise. For example, if the new interest rates you uncover during your search are only slightly lower (less than a full percentage point), but the terms and conditions are more stringent, then perhaps you shouldn’t consider refinancing with a new lender after all!
Generally speaking though, whether it is a refinance mobile home mortgage loan, or a deal to refinance your current mortgage, the overriding consideration for refinancing is to seek a loan that more closely reflects your current financial situation:
All of these factors need to be considered when deciding when is it worth it to refinance your mortgage. But there’s more…!
Non-Interest Rate Considerations
While interest rates are no doubt the overriding factor, don’t forget the impact that convenience and flexibility can add to your decision on whether or not to refinance. When making that decision, consider the following non-interest rate factors:
While the above factors won’t directly impact the interest you pay for your mortgage – they will make the overall cost of owning your home cheaper in the long run.
And that brings us to yet another inflection point: Knowing what you need to refinance your mortgage!
If you are refinancing with your existing lender, then you may not need much documentation, because they have all they need to process your application. However, go prepared with:
When you put in a refinance home mortgage application with a new lender, they will likely need all of this information from you. So go prepared! Experts at Mortgage Genie Canada are here to help you through the entire process.