REFINANCE

ARE YOU READY TO REFINANCE YOUR CURRENT MORTGAGE LOAN?

Refinancing works by giving homeowner's access to a new mortgage loan which replaces their existing one. Refinances can be used to reduce a monthly mortgage payment, to take cash out for home improvements or to cancel mortgage insurance premiums, among other uses.

Individuals who recognize that a mortgage makes up a considerable portion of their investment portfolio often use it as part of their financial strategy towards building wealth.They are able to do so through refinancing, which often enables them to save thousands of dollars over the life of their loan.

The availability of "no cost" loans and numerous other loan products creates tremendous opportunities for many borrowers in a variety of situations.

Here are a few wherein refinancing can be advantageous:

In a declining interest rate environment, it is always wise to contact a mortgage adviser to ascertain what the current rate is for a no cost loan. As with the stock market, no one can predict where the bottom of the market will be; therefore, it is not advisable to try to "time" the market, hoping to get in when rates have reached their lowest point. Even if rates have only dipped slightly, it would be unfortunate to miss out on an opportunity to obtain a lower interest rate for no fees. If rates continue to drop, you can refinance again, as it cost you nothing the first time. In fact, a proficient mortgage broker will make any subsequent refinances quick and effortless.

• If you are seriously planning on moving in the near future, refinancing into a no cost adjustable loan with a low start rate can save you hundreds of dollars a month before you move. This is due to the fact that you will be retiring the new mortgage through the sale of your home prior to your interest rate adjusting upwards.
  

• Refinancing can also make sense even with closing costs, including points, as long as you "break even" for those costs. (Your break even point is the point in time in which the dollar amount of money you have saved on your monthly mortgage payment equals the dollar amount you paid up front for closing costs.) If you retain the mortgage beyond your "break even" point you may realize substantial savings. Loans that carry closing costs typically offer lower interest rates than "no cost" loans. One of our experienced loan agents can help you decide if now is the right time to refinance and if a "no cost" loan or a loan with closing costs is best for your circumstances.
  

• If your present mortgage no longer meets your current needs, a refinance will enable you to update and convert it to a loan product that does.
  

• If your property has appreciated, refinancing to consolidate your first and second mortgage may provide you with immediate and significant payment relief.
  

• Finally, refinancing can be a useful financial tool to accommodate home improvement costs, education expenses, consolidating debt and funding investments.