Friday, February 13, 2009

Many people are talking about mortgage refinancing

Hello and I hope you are enjoying your day
Mortgage refinancing is a hot topic at the water cooler these days. Most mortgage holders in a fixed rate mortgage have been comparing their contract rate to the current interest rates.
In many cases, borrowers would benefit by renegotiating their current mortgage. The interest saving with the lower rate is often significantly greater than the penalty charged for an early payout.

I know brokers who would be happy to 'do the math' and determine whether it makes sense to renegotiate a mortgage. Lender rules regarding penalties vary; the only way to know the payout penalty is by directly contacting the lender for this figure.
Some lenders may offer relief regarding the penalty if the mortgage remains with them, others won't. Also, beware of the 'Blend & Extend' rates, they usually have the penalty fee worked into the new rate calculation.

Yesterday's Globe and Mail had an interesting article regarding mortgage renegotiations. This is a link to Rob Carrick's article, The Art of Mortgage Renegotiation.
see here

Happy Friday the 13th! Enjoy your looooonnnnnggggg weekend !
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


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