Refinancing is the process of replacing your current mortgage with a new, better one. There are many reasons that people would go through the process of refinancing their mortgage: reducing the interest rate (most common reason), pulling equity out for a variety of reasons (a “Cash Out” mortgage), removing a co-signor from the current mortgage, reducing or increasing the term of the mortgage and many other reasons.
We are experts in structuring and re-structuring transactions for refinance. The guidelines can sometimes be complicated and you want to have someone who has the expertise in guiding you through the process to obtain the best financial outcome. We have built a ton of spreadsheets for various situations which calculate the overall savings, amount of cash out, fees (if any, 80% of our refinances are “no cost” transactions where we pick up the fees)
"Don’t I have to lower my rate by 1% in order to refinance?"
This is an old rule of thumb that has somehow stood the test of time. Yes, when loan amounts were $100,000, you would need to drop your rate by a substantial amount for the savings to be worth the fees in the long run.
However, if you have a $500,000 mortgage balance, a savings of even just .25% will result in interest savings of over $100/month, usually at without having to pay any fees.
"How will I know if it’s ‘worth it’?"
One of the benefits of working with our team is that we are always monitoring the current interest rate environment to determine if you are in the lowest rate mortgage possible. We call each of our clients at least once a year for a comprehensive mortgage review to double check that your current mortgage is still lining up with your overall financial goals. Things change and we want to make sure that your mortgage is changing with you. We also set up an awesome rate alert at the closing of your loan directly in our system which automatically updates us when the market rate is lower than your current rate so that none of our clients are ever paying too much.
We have a 94% client retention rate because we are always on the lookout for what is in your best interest (haha, get it? interest!)