Refinance

By refinancing your mortgage, you’re essentially paying out your existing mortgage, with a new mortgage. This new mortgage can be with your existing lender or the mortgage can be moved to a different lender. Your lender then uses the newer mortgage to pay off the old one, so you’re left with just one loan and one monthly payment. The new loan might have different interest rate, term or loan amount Your new loan might also reset the repayment clock.

There is often some sort of cost or expense associated with refinancing.

Refinancing comes with closing costs, which can affect whether getting a new mortgage makes financial sense for you. These costs can be between 2 percent and 6 percent of the amount you refinance. Common closing costs include an appraisal fee, legal fees or/and a penalty to break your existing mortgage. You’ll need to calculate the break-even point to determine does the benefit outweigh the cost?

Refinancing can be one of the best financial decisions you make. Give me a call to discuss if it’s right for you.