When Is The Best Time To Refinance My Mortgage?
In real estate there is an old adage “When is the best time to purchase real estate?” The answer” It is always the best time to buy real estate” Our question to you is this “When is the best time to refinance my mortgage?” The answer “As soon as you finish reading this article”
The question is why now and what are the benefits to me?
The best 5 year fixed interest rates recently dropped to 3.45% on October 1, 2010. I cannot remember rates being this low in my life time and we are at a period in history where they are unlikely to be this low again. The Bank of Canada has been raising its overnight rates upward over the past year and the prime rate is currently 3.0%. This trend is likely to continue as the economy improves and ultimately fixed rates will again be on the increase.
Why would you not take advantage of historic low interest rates if it meant saving you thousands or possibly tens of thousands of dollars over the life of your mortgage? Some are choosing to overlook the low fixed rates because the variable options are still cheaper and they may still be for some time. Most however have not even considered the financial implications of remaining in a higher interest fixed rate mortgage and this is where it becomes interesting.
I can arrange for you to meet with a mortgage specialist from my team, at no cost to you, to review your current mortgage options. They will review if a fixed rate or variable rate mortgage is best for you and will detail exactly how much you can save. They might recommend you stay with your current lender or may recommend a new lender. Remember we work for you, not the lender, so your best interest will be front and centre. There is no cost for the review so what do you have to lose? I want all my clients to be in the best possible financial position and having the right mortgage is an important step in the process.
Another old adage in real estate that “Real estate is the most important investment decision you will ever make” In reality, “How you finance this real estate investment is your most important decision”
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