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Your Refinancing Guide

by | Dec 6, 2014

Here is Your Refinancing Guide from GLM Mortgage Group.
Your Refinancing Guide
Why Refinance?
There are many reasons why refinancing your mortgage is a smart move. You can:

  • take advantage of lower interest rates
  • stabilize payments by changing from a variable-rate mortgage to a fixed rate
  • pull equity out of your home for debt consolidation, home improvements, a vacation, investments, children’s education, and more

When interest rates are low, refinancing your existing mortgage and switching to a better rate may save you a lot of money – possibly thousands of dollars per year.
Perhaps your home is financed through a first and second mortgage. If so, reviewing your options to combine the two could also results in having more money left over at the end of each month.
This may be the perfect time to get off to a fresh start by refinancing your mortgage and freeing up some money to pay off that high-interest credit card debt.
By refinancing now and getting your debt off your mind, you can put yourself and your family in a better financial and emotional position.
It’s very important to not rack up your credit cards after refinancing, however, so set your goals and budgets, and stick to them.
If you’ve build up equity in your home over the years, it often makes sense to refinance your mortgage to access that equity for things such as renovating your home, sending your kids to college, taking that dream vacation you’ve longed for or even buying your own vacation or rental property.
I can help you decide what makes the most sense for your unique mortgage requirements.
Is Now the Right Time to Refinance?
You will face a penalty for paying out your existing loan prior to the end of your mortgage term, but this may be offset by the extra money you could acquire through a refinance.
I can help you calculate it now is a good time for you to refinance your existing mortgage.
By refinancing, you may extend the time it will take to pay off your mortgage. But there are many ways to pay down your mortgage sooner and save thousands of dollars a year.
Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal (the true value of your mortgage minus the interest payments) per year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money.
You can also opt for accelerated bi-weekly mortgage payments. Not to be confused with semi-monthly mortgage payments (24 payments per year), accelerated by-weekly mortgage payments (26 payments per year) will not only your mortgage off quicker, but it’s guaranteed to save you a significant amount of money over the term of your mortgage.

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