When you have an existing mortgage it is usually set for quite a long period of time. Meanwhile things will change and your mortgage can become outdated. Changing your job or becoming unemployed will result in a different financial situation. Maybe something changed in the financial market. Interest rates drop or change regularly. This is why it is possible to change your mortgage.
There can be a lot of reasons why you would want to adjust or replace your mortgage. If you did a god job at obtaining a good credit score, you will probably benefit from refinancing.
The three most common reasons are:
The interest rates have dropped since you committed to your mortgage. You can’t predict how future interest rates will move. Thus you can’t know at which moment whether the interest rates are on their lowest point. A mortgage broker has more insight and experience to recommend whether it’s advisable to refinance. I will recalculate the interest, new monthly payment and tax deductions. Refinancing also will cost you money, because of the fees. I will take this into account.
If you aren’t able to come up with the monthly costs of your mortgage. If you prolong the term of your current mortgage agreement, you will be able to lower these costs. If you add 5 years to your mortgage at a lower or the same rate, you will be lowering your monthly payment. This doesn’t mean it is beneficial in the long run. A mortgage broker will be able to work out what is best for your situation.
If your credit score improved, you will be able to get a better deal. Did you do a good job at improving your credit score, by for example paying your bills on time for last 10 years? You can try to recalculate your credit score to check if anything changed. Using your recalculated score to refinance is a great way to save money.
We know that refinancing is not only about interest rates but may also be about lowering your monthly payment. But refinancing isn’t beneficial in every case. In some cases the fees can be expensive. Think about closing costs. Refinancing is never for free. I can see to it that we reassess your situation and weigh it up to possible long term benefit. Another reason why refinancing may be unattractive is when your credit hasn’t improved. In that case you may have a problem with the bank, while they reevaluate your score. They may even decide to not agree on a mortgage plan.
Even in those difficult cases, I will find alternatives and a possibility to financially gain from refinancing.
You can count on me!
Adjusting your mortgage can be quite a handful. To make the right decision you can call in the help of a mortgage broker with experience. I will research which mortgages are available and I will gladly calculate which refinancing possibility you can benefit from. I will make sure that you will get a fair interest rate even in bad financial situations.