Mortgage refinancing

March 9, 2009

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Mortgage refinancing

With interest rates at an all time low, homeowners are calling their mortgage brokers to inquire on refinance their mortgages at lower rates.

Homeowners who presently have fixed rate mortgages at 5.5% or higher are finding that they are better off refinancing their mortgages at today’s low 4.29% 5-year rate and pay the penalties, appraisal and legal costs. The cost benefit of switching to a lower interest rate in some cases are compelling.

Cost benefit analysis

A home owner with $342,200 mortgage (25 years amortization) at 5.65%, paying $2,167.92 a month will save $269.24 a month refinancing at 4.29%. With 3.5 years remaining on the mortgage, the saving works out to just over $11,300. Depending on the costs of refinancing, a home owner can decide if he or she should refinance.

If you are interested in refinancing, you should contact your curent lender to find out the penalty cost of breaking your mortgage contract. Your mortgage broker can work out the cost benefit and advise you whether you are better off refinancing or to stay put with your mortgage. Reinancing has to make sense, save you money or helps free up extra cash you need.

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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