http://genxfinance.com/should-you-refinance-your-mortgage/ Helping a unique generation achieve financial independence. Thu, 09 Feb 2012 03:12:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://genxfinance.com/should-you-refinance-your-mortgage/comment-page-1/#comment-139824 Multiple Egg Baskets Tue, 10 Aug 2010 20:45:45 +0000 http://genxfinance.com/?p=2214#comment-139824 The key is to find you break even point and to make sure that you properly account for all of the fees associated with a refinance. The Governement of Canada and a Royal Bank of Canada have two great calculators that help you to determine if you should break your mortgage. The key is to find you break even point and to make sure that you properly account for all of the fees associated with a refinance. The Governement of Canada and a Royal Bank of Canada have two great calculators that help you to determine if you should break your mortgage.

]]> http://genxfinance.com/should-you-refinance-your-mortgage/comment-page-1/#comment-139198 Candee Mon, 02 Aug 2010 19:34:06 +0000 http://genxfinance.com/?p=2214#comment-139198 It doesn't make any sense to refinance and pay points unless you get a really great discount. With many lenders, 1 point will still only buy down a loan by about 1/4 point. In addition, if your mortgage balance is already high, one of the biggest costs to refinancing is the loan origination fee, usually 1% of the loan amount. These two items are what drive up the cost of refinancing. Eliminate these and the cost isn't so high. Many large lending institutions (and don't overlook credit union) have eliminated the loan origination fee and are making it up by charging points. Look for a lender with the lowest fee structure even if the interest rate isn't quite as low and the highest buy-down rate for the least number of points. Of course, you have to meet all the other criteria as outlined in the post. It doesn’t make any sense to refinance and pay points unless you get a really great discount. With many lenders, 1 point will still only buy down a loan by about 1/4 point. In addition, if your mortgage balance is already high, one of the biggest costs to refinancing is the loan origination fee, usually 1% of the loan amount. These two items are what drive up the cost of refinancing. Eliminate these and the cost isn’t so high. Many large lending institutions (and don’t overlook credit union) have eliminated the loan origination fee and are making it up by charging points. Look for a lender with the lowest fee structure even if the interest rate isn’t quite as low and the highest buy-down rate for the least number of points. Of course, you have to meet all the other criteria as outlined in the post.

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