One of the most common reasons cited for refinancing a mortgage before the end of its term is to obtain a lower interest rate.
We all know that lower interest rates mean that it costs less to borrow overall, because over time you will pay less in interest charges. And everyone likes to save money!
You may have heard that there are other potential benefits to refinancing to get a lower interest rate, such as building equity in your home at a faster rate, decreasing the size of your monthly mortgage payments or paying off your mortgage sooner.
However, renegotiating and refinancing your mortgage to get a lower interest rate means changing the conditions of a contract. Depending on the terms and conditions of your current mortgage, your lender may not allow you to do this. Or, if you can, it could result in significant costs to you (known as penalties or prepayment charges, and other fees), often to the tune of thousands of dollars.
Interest rates have been low for quite some time, and you may be wondering if you should refinance your mortgage to lock in a lower interest rate than the one you currently have. But you may be confused about whether it’s worth it to take the hit in terms of penalties and fees.
That’s where Mortgage Forces can help. Our team of experts will evaluate your situation and help you figure out what’s best for you. It may make sense for you to refinance your mortgage before the end of its term to get a lower interest rate…or it may not. We’ll do the math for you and you can rest easy, knowing your Mortgage Forces team has your best interests at heart.
For more information on mortgage refinancing, contact Mortgage Forces, today.