Our Mortgage Brokers from INVIS: The Siemens Group Can Help You Determine Whether You Can Afford the Costs of Refinancing Mid-Term
If you are refinancing your mortgage at maturity you may end up saving thousands of dollars if interest rates are lower or you have previous prepayment penalties. But did you know that you can also refinance your mortgage mid-term? However, refinancing your mortgage midterm without the proper expertise can either save or lose you money, which is why it is essential to enlist in the services of a professional mortgage broker, like the ones at INVIS: The Siemens Group.
If you are thinking about refinancing midterm, it is important to first understand the costs involved in doing so. All lenders, for the most part, have the same language in their contract; however, the formulas used can be very different which result in MASSIVE differences between lenders. Knowing the costs to break the mortgage mid-term is one of the most important aspects to the product you choose. Not understanding this formula can significantly limit your ability to do what you would like to do in the future.
For example, if a client wishes to downsize in order to save funds, they will sell their home and buy a smaller, cheaper place. You might suspect that their mortgage payments would go down with this change; however, this may not be the case. If the customer has a mortgage with a major bank, they will be penalized further by taking the original discount that was received when the mortgage was first taken out. This will result in a significant penalty that the borrower may not be able to afford.
Before planning on refinancing mid-term, the first step is to get the quote for the penalty in writing as this will determine whether you can afford to refinance or whether it makes sense to refinance at this point in time. Our specialists from INVIS: The Siemens Group will examine your current situation and determine whether you can benefit from refinancing mid-term. Contact us today by phone at 604 351 7438 or toll free at 1 888 961 7438 to learn more about all of our mortgage services.