With interest rates in a constant state of change, what kind of mortgage is ideal?
Should we refinance? This is one of the most frequently asked mortgage decision questions from our clients.
Consider a few points when exploring whether a refinance make financial sense given your current life situation:
(1) How long, with certainty, do you plan to remain in your current residence? If applicable, are you happy with your children’s school system? Does the area serve current and future employment needs?
(2) How much are the total financing fees in your proposed transaction? Underwriting, appraisal, attorney, title insurance, government recording, etc. are all fees that can add up to a considerable amount of cost to you.
(3) How much are you saving in terms of monthly interest savings? You must be able to determine your financial break-even for fees paid and compare to your expected time in current residence.
(4) What is your Targeted Retirement Age? We believe it is prudent to satisfy your mortgage obligations prior to retirement. You should consider mortgage products with a payment schedule that ends before your targeted retirement age.
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