Mortgage interest rates are so low right now, they are low in fact that they are still sitting near their all-time lows. Just because you might be mid-term right now doesn't mean that you can't take advantage of these ultra-low rates. In many cases you can SAVE THOUSANDS AND THOUSANDS of dollars by refinancing your mortgage for a lower rate.
Homeowners often inquiry how they can get a lower rate on their mortgage. In many cases they think that a phone call to the lender is enough for them to just drop the rate, however this is not the case. The process of getting a lower rate on your mortgage is called refinancing. This is when you actually pay off your existing mortgage and a new mortgage is issued. Some lenders might call it early renewal, but this is just a play on words to try and stop you from shopping around to get the best rate.
In order to refinance your mortgage for a lower rate, your broker will get you approved for a new mortgage. During the process the new lender will be told which bank you are currently with and they will make arrangements for your current mortgage to be paid off in full. From there, your solicitor will be instructed on what to do.
By refinancing your mortgage for a lower rate you will ultimately get a lower mortgage payment (if the amortization period remains the same or is lengthened). The lower payment on your mortgage will be your payment going forward.
The total savings over the term of a mortgage can be absolutely huge after you refinancing. Now, keep in mind you will incur expenses for refinancing your mortgage. These expenses will include but are not limited to: interest penalty for breaking your mortgage, discharge fee, appraisal fee and legal fee. There is no way to tell you exactly how much your expenses will total until the process is complete, but you can find out how much your penalty will be by simply calling your existing lender and asking them how much your penalty would be if you paid off your mortgage today.
Whatever amount your lender gives you is only good for that day, but it will give you an idea. The amount can change based on interest rate movement and time to maturity.
Once you get your penalty amount call me and I will help you try and figure out whether it is worth it for you to refinance for a lower rate. In many cases you can save thousands of dollars in a very short period of time. Your total savings will include lower mortgage payments, lower interest payments and your balance should be lower at the end of the term as well. In addition, if you keep your payments the same as what you are currently paying then the savings multiplies tremendously.
I've been in the mortgage industry for a long time and I get the greatest statisfaction from helping my clients save thousands of dollars. When I can show someone a plan that will save then hundreds of dollars per month, thousands of dollars in interest savings per year and then show them how their mortgage is going to be paid off years faster, that is a great feeling!
If you are considering refinancing your mortgage for a lower rate, call me toll free at 1-866-257-0158 and I'll help you figure out how much you can save!