Refinancing is a debt management art. When the new rate is lower than current mortgage rate, a smart home owner should always consider refinancing to save on the interest payment, as long as the net savings make sense. There are multiple factors to consider, on top of gross savings from lower interest rate, such as upfront costs like legal fee, valuation fee & any refund to existing bank, other important clauses of the new mortgage package should also be studied thoroughly with the assistance of your mortgage broker or mortgage banker.
This calculator estimates possible refinancing savings for first 3 years. It assists you to decide next step for your current mortgage package. Get ready your loan statement, current interest rate, and make sure that you will be out of penalty & claw back period in the coming 3 – 6 months. Not sure what those mean? Call us now.
