There are many reasons why a homeowner would want to refinance their mortgage. It could be because they want to bump up their savings, spend less on monthly repayments, or have funds for their kids' education.
In this video, we will talk about the benefits of refinancing and why it is so important to know when to consider this process.
With so many benefits to refinancing, should you do it as well? Well, the answer is "maybe". That's because, just like applying for a mortgage, refinancing involves time, effort, and money. So before you jump into it, consider whether it's the right move for you.
To do that, you first need to calculate the breakeven point by dividing the total cost of refinancing by the monthly savings.
Let's say the total cost of refinancing is $3000, and your monthly savings would be $150. Dividing $3000 by $150 would give you 20. This means that it'll take 20 months before you reach your breakeven point. Beyond that, you'll be able to keep the difference on your new monthly payment.
The next thing to consider is, are you going to stay in your house long enough to at least reach the breakeven point? Because if not, refinancing your mortgage would be a financial loss.
Schedule an appointment with our mortgage broker to better understand your options. Call Ebenezer Mortgage Solutions today at (813) 284 - 4027.